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The Impact of Electronic Word of Mouth (eWOM)
towards the Consumer Choice of a Destination
(With regard to Tourism Industry in a Global Context)
Author: Merengnage Sulakkhana Nirmanee
Author Student ID No: 1524496
The Academic Award: Master of Business Administration
Supervisor: Mr Chamara De Zoysa
The Year of Submission: 2016
Student ID: 1524496 1
Declaration
I hereby declare that this dissertation in its entirety, unless specifically mentioned
and given credit to, is my work. I further declare that her dissertation in whole or part
has not been presented for any award or published, including at this university.
Student Name : M. Sulakkhana Nirmanee
Student Number : 1524496
Date : 1st
September 2016
Student ID: 1524496 2
Abstract
Growth and popularity of internet and social media has resulted in a rapid shift from
traditional WOM to Electronic Word of Mouth (eWOM). Internet has now created a
free space and opportunity to share consumers‟ ideas, experiences and knowledge
around the world within few seconds. At the same time, digital space has become
one of the most credible global medium for marketing.
Tourism industry has been shaped up by with the growth on internet, online
communities, social media and eWOM. Today travellers are powerful as tourism
brands and they have become a medium of information exchange. Researcher
believes that the eWOM plays a key role in tourism industry buying behaviours of
travellers therefore it is significant for travel digital marketers to manage online
reputation of their brands.
Researcher has identified the knowledge gap between the impact of eWOM towards
tourism buying behaviour as an interesting and contemporary topic to conduct a
research study. With this understanding, researcher has selected the research topic
as „The impact of eWOM towards consumer choice of a destination with regard to
tourism industry. Both primary and secondary surveys have been conducted by the
researcher in terms of building the research study.
It is concluded that the eWOM has an impact on consumer choice of a travel
destination based on the correlation analysis. Recommendations to improve the
positive results of eWOM and skills needed for travel digital marketers have been
identified based on the conclusion. Further research areas have been suggested at
the end of the study.
Keywords: Word of Mouth, Electronic Word of Mouth, Customer testimonials,
Traveller reviews, Social Media, Web 2.0, Travel Destination, Consumer Choice,
Digital Marketers
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Table of Contents
Chapter 1 - Introduction.............................................................................................. 9
1.1 Introduction to the industry............................................................................ 9
1.2 Background of the study ............................................................................. 10
1.3 Significance of the research........................................................................ 11
1.4 Problem statement...................................................................................... 13
1.5 Research objectives.................................................................................... 13
1.6 Research questions .................................................................................... 13
1.7 Research hypothesis .................................................................................. 14
1.8 Chapter summarisation............................................................................... 14
Chapter 2: Literature Review.................................................................................... 16
2.1 Word of Mouth (WOM)................................................................................ 16
2.2 Electronic Word of Mouth (eWOM) ............................................................. 18
2.2.1 Motives of eWOM ....................................................................................... 18
2.2.2 Potential results of eWOM .......................................................................... 19
2.2.3 Benefits of eWOM....................................................................................... 19
2.2.4 Mediums of eWOM of travel ....................................................................... 21
2.2.5 Dimensions of eWOM................................................................................. 22
2.3 Consumer choice of travel destination........................................................ 24
2.4 Relationship between Electronic Word of Mouth and Consumer choice in a
travel destination ...................................................................................................... 25
2.5 Theoretical framework ................................................................................ 26
Chapter 3: Research Methodology........................................................................... 27
3.1 Research problem....................................................................................... 27
3.2 Research approach..................................................................................... 27
3.3 Research design......................................................................................... 27
3.4 Operationalization....................................................................................... 28
3.5 Method of data collection............................................................................ 30
3.6 Method of data presentation ....................................................................... 30
3.7 Method of data analysis.............................................................................. 30
3.8 Sampling..................................................................................................... 31
3.9 Questionnaire design.................................................................................. 31
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3.10 Reliability and Validity measures ................................................................ 32
3.10.1 Stability ....................................................................................................... 32
3.10.2 Internal Consistency ................................................................................... 32
3.10.3 Validity........................................................................................................... 33
3.10.4 Content validity.............................................................................................. 34
3.10.5 Construct validity........................................................................................... 34
Chapter 4: Data Analysis and Presentation.............................................................. 40
4.1 Sample profile............................................................................................. 40
4.1.1 Gender........................................................................................................ 40
4.1.2 Age ............................................................................................................. 41
4.1.3 Education level ........................................................................................... 41
4.1.4 Occupation.................................................................................................. 42
4.1.5 Use of internet ............................................................................................ 43
4.2 Dimensions of eWOM................................................................................. 43
4.2.1 Searchers‟ intent......................................................................................... 44
4.2.2 Trustworthiness of message ....................................................................... 48
4.2.3 Senders‟ expertise ...................................................................................... 52
4.2.4 Source similarity ......................................................................................... 56
4.3 Consumer choice of travel destination........................................................ 59
4.5 Impact of eWOM towards the consumer choice of a travel destination ...... 59
Chapter 5: Conclusion, Implication and Recommendations..................................... 65
5.1 Conclusion and implication ......................................................................... 65
5.3 Recommendations...................................................................................... 67
5.4 Further research insights ............................................................................ 68
References............................................................................................................... 70
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List of Abbreviations
WOM – Word of Mouth
eWOM – Electronic Word of Mouth
SI – Searchers‟ Intent
TW – Trustworthiness of Message
SE – Senders‟ Expertise
SS – Source Similarity
CC – Consumer Choice
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List of figures and diagrams
Figure 1: Theoretical Framework
Diagram 1: Gender composition
Diagram 2: Age composition
Diagram 3: Education level
Diagram 4: Occupation level composition
Diagram 5: Internet use
Diagram 6: Interest to read testimonials on internet (SI1)
Diagram 7: Gather information from customer testimonials (SI2)
Diagram 8: Reviews before making the decision (SI3)
Diagram 9: Visit more than 5 websites (SI)
Diagram 10: Biasness of the customer testimonials (TW1)
Diagram 11: Trust customer content than website (TW2)
Diagram 12: Trust reviews from friends (TW3)
Diagram 13: Trust reviews with actual names (TW4)
Diagram 14: Trust reviews with photos (TW5)
Diagram 15: Trust reviews from frequent submitters (SE1)
Diagram 16: Trust reviews with likes (SE2)
Diagram 17: Negative impact of Spellings and grammar (SE3)
Diagram 18: Trust experienced travellers (SE4)
Diagram 19: Reviews from same gender (SS1)
Diagram 20: Reviews from same age group (SS2)
Diagram 21: Reviews from same residence area (SS3)
Diagram 22: Scatter plot – SI and CC
Diagram 23: Scatter plot - TW and CC
Diagram 24: Scatter plot – SE and CC
Diagram 25: Scatter plot – SS and CC
Diagram 26: Scatter plot – Overall eWOM and CC
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List of tables
Table 1: Operationalization of key concepts
Table 2: Cronbach‟s Alpha for Searchers‟ intent
Table 3: Cronbach‟s Alpha for Trustworthiness of message
Table 4: Cronbach‟s Alpha for Senders‟ expertise
Table 5: Cronbach‟s Alpha for Source similarity
Table 6: Summary of Cronbach‟s Alpha: Reliability
Table 7: KMO and Bartlett‟s test – Searchers‟ intent
Table 8: Total variance explained – Searchers‟ intent
Table 9: Component Matrix – Searchers‟ intent
Table 10: KMO and Bartlett‟s test – Trustworthiness of message
Table 11: Total variance explained – Trustworthiness of message
Table 12: Component Matrix – Trustworthiness of message
Table 13: KMO and Bartlett‟s test: Senders‟ expertise
Table 14: Total variance explained: Senders‟ expertise
Table 15: Component matrix: Senders‟ expertise
Table 16: KMO and Bartlett‟s test: Source similarity
Table 17: Total variance explained: Source similarity
Table 18: Component matrix: Source similarity
Table 19: Summary of validity values
Table 20: Gender composition
Table 21: Age composition
Table 22: Education level composition
Table 23: Occupation level composition
Table 24: Internet use composition
Table 25: Interest to read testimonials on internet (SI1)
Table 26: Gather information from customer testimonials (SI2)
Table 27: Reviews before making the decision (SI3)
Table 28: Visit more than 5 websites (S4)
Table 28: Overall central tendency of searchers‟ intent
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Table 29: Biasness of the customer testimonials (TW1)
Table 30: Trust customer content than website (TW2)
Table 31: Trust reviews from friends (TW3)
Table 32: Trust reviews with actual names (TW4)
Table 33: Trust reviews with photos (TW5)
Table 34: Overall central tendency of trustworthiness of message
Table 35: Trust reviews from frequent submitters (SE1)
Table 36: Trust reviews with likes (SE2)
Table 37: Negative impact of Spellings and grammar (SE3)
Table 38: Trust experienced travellers (SE4)
Table 39: Overall central tendency of senders‟ expertise
Table 40: Reviews from same gender (SS1)
Table 41: Reviews from same age group (SS2)
Table 42: Reviews from same residence area (SS3)
Table 43: Overall central tendency of source similarity
Table 44: Central tendency of consumer choice in travel destination
Table 45: Correlation analysis – SI and CC
Table 46: Correlation analysis – TW and CC
Table 47: Correlation analysis – SE and CC
Table 48: Correlation analysis – SS and CC
Table 49: Correlation analysis – Overall eWOM and CC
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Chapter 1 - Introduction
The main objective of this chapter is to provide an introduction to the research study.
Researcher has analysed the tourism industry, economic contribution of it and
growth of the industry. Researcher has identified the shift of word of mouth from
traditional mediums to online mediums and the impact of it towards tourism industry.
As the tourism industry is a wide industry, researcher has selected to discuss on the
consumers’ choice of a travel destination as the factor to measure based on the
impact of electronic word of mouth. This chapter contains the background of the
study, significance of the study and research scope. Researcher has developed
research objectives, research questions and research hypothesis in this chapter and
finally summarised the chapters of the research.
1.1 Introduction to the industry
Tourism is one of the rapidest growing industries in the world and the growth rate is
anticipated to endure at a pace of 4% annually in next five years at global level. In
the year 2015, tourism industry contributed 7,200 billion USD to the global gross
domestic production (GDP) which represents 9.8% of global GDP and it is expected
to achieve 3.3% of growth at the end of the 2016. In most of developing countries,
tourism plays the role of the leading contributor in the economy. Today travel and
tourism industry creates to over 284 million of direct employment opportunities and it
is affecting positively towards infrastructure development (Travel and Tourism
Economic Impact, 2016).
Sri Lanka is known as one of the most popular destinations in South Asia with
several attractions of wildlife, tropical nature and beaches. Tourism in Sri Lanka is
also growing in a rapid manner after the end of the three decade civil war,
infrastructure development and growth of informational channels. Sri Lanka recorded
its highest number of tourist arrivals in the year 2015 with 1,798,980 tourists which is
17.8% of increase compared to the year 2014. It can be identified as the third sector
in earning foreign exchange, USD 2980 million per annum which represents 12.4%
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from total foreign exchange earnings. Asia is the main source for Sri Lankan inbound
tourism which owns 45.7% from the total share followed by Western Europe with a
fraction of 30.7% (Annual Statistics Report - SLDA, 2015).
Tourism industry has been shaped with the growth of the internet. Customers can
now gather information about a destination from internet before they travel, book
online without visiting the travel store, airlines has their online reservation methods,
even small travel and adventure travel companies have their own websites, online
hotel booking websites such as Booking.com and agoda.com are popular among the
travellers, review websites such as Trip Advisor, Yamu and Lonely Planet are
influential, frequent travellers have their own travel blogs and travel stories are
widespread in social media platforms such as Tourist Link, Snapchat and Instagram.
Therefore the relationship between internet and travel industry is significant to study.
1.2 Background of the study
Word of mouth is defined as the way of influencing someone‟s buying behaviour by
sharing an informal opinion on a product or service based on the personal
experience of consuming it. As stated it is a flow of information from sender to
receiver, word of mouth can be either positive or negative. According to previous
researches and journal papers, word of mouth is considered as one of the most
credible and effective methods in communication.
With the growth of internet, online platforms and social media, word of mouth has
shifted from traditional level to global online level. Electronic Word of Mouth (eWOM)
is the way of exchanging information via online with a wider community. With the
availability and popularity of online channels, social media platforms, blogs, review
websites, virtual global communities and online forums Electronic Word of Mouth
(eWOM) has become more momentous and challenging. When comparing with the
traditional word of mouth, Electronic Word of Mouth (eWOM) has enormous benefits
towards both customers and marketers, such as, being a fast flow of information
between sender and receiver, high breadth of information, ability to spread to a large
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number of people, ability to communicate in global level, consumer protection from
anonymous status of information sender and high level of time saving.
As the tourism and adventure industry grows with the support of the technological
advancements and growth and popularity of internet, online marketing
communication tools and social media platforms play a key role in tourism industry.
Today travellers are seeking information about destinations, hotels, restaurants, food
and festivals on internet, majority of people tend to find and book travel packages
online, posting their check-ins and sharing their experience online. As the reviews,
travellers‟ blogs and social media posts on travelling are based on personal
experiences of travellers, readers get inspired to travel, find new destinations, food,
travel packages and tips in travelling. Therefore internet applications can be
identified as the common space for people share their experiences on product and
services. According to the research conducted by Gretzel and Yoo in the year 2008,
more than 80%of travellers considered online reviews and testimonials of travellers
when they make purchasing decisions in terms of deciding where to go, what to do
and how to go. Approximately over USD 10 billion travel purchases are influenced by
online reviews according to Compete (2007) and it is probably one of key influences
in travel purchasing decision process.
As the tourism industry is wide scope of research study, researcher has selected to
discuss about the consumers‟ choice of a travel destination and the impact of
electronic Word of Mouth in selecting a travel destination. With this understanding,
the researcher develops the research on the impact of Electronic Word of Mouth
(eWOM) towards the consumer choice of a travel destination with regard to tourism
industry.
1.3 Significance of the research
As mentioned before, word of mouth has moved from traditional level to global
electronic level. Consumers‟ idea on a particular purchase decision or an
experience based on the consumption can be shared among people in a free
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manner within a few seconds. Reach and volume of the information shared,
audience and the time of the sharing and method of sharing is significant compared
to traditional mediums. With the growth of internet, information is freely available for
customers and customers themselves generate content towards products, services
and brands. Electronic Word of Mouth (eWOM) has become of the main player in
tourism industry as people nowadays search information on internet, share their
travel experiences and photos on social media, create and maintain their own blogs,
write reviews on websites and share their travel stories in online communities. Some
researchers argued that the credibility of user generated content such as reviews,
social media posts and blogs is higher than the content shared by travel companies
(Litvin, Blose and Laird, 2004). Therefore Electronic Word of Mouth (eWOM) is vital
in making travel purchasing decisions.
Researcher found this topic as interesting to investigate from the perspective of a
marketer. Marketers are facing challenges in terms of implementing their marketing
strategy when customers are getting the opportunity to share the experiences after
travelling to a place or eating a new food. Different customers define and share
different opinions on travel experiences and sometimes negative feedback spread
around the world faster than advertising messages. Therefore marketers should be
good in managing their online reputation created via Electronic Word of Mouth. So
understanding the impact of Electronic Word of Mouth towards consumer choice in
travel destination is vital for marketers. Benefits of studying this research topic can
be summarised as follows;
i. Can identify the mediums people collect and share information related to
tourism industry, and marketers can pay more attention to these mediums in terms of
creating their marketing communication strategy
ii. Based on the secondary data analysis which is known as the literature survey,
dimensions of Electronic Word of mouth can be identified. These dimensions will
provide insights to marketers in terms of creating marketing communication touch
points
iii. Impact of Electronic Word of Mouth in selecting a destination will be
measured based on a survey, conclusions can make the foundation in building the
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inbound marketing and content strategy
iv. Based on the conclusion of the study, research study can develop
recommendations to marketers in creating their overall marketing strategy
1.4 Problem statement
The impact of Electronic Word of Mouth (eWOM) in consumer choice of a destination
with reference to the tourism industry
1.5 Research objectives
The main objective of the research is to identify the impact of the Electronic Word of
Mouth (eWOM) in consumer choice of destination with reference to the tourism
industry. Following can be identified as the specific objectives;
1. To identify the ways in which eWOM distribute information with regard to the
tourism industry
2. To examine the impact of eWOM towards the consumer choice of travel
destination with regard to the tourism industry
3. To identify the challenges a brand in the tourism industry face from eWOM
4. Recommendations to manage positive eWOM in tourism industry
1.6 Research questions
1. What are the ways that eWOM distribute information in the tourism industry?
2. What is the impact of the eWOM towards the consumer choice of a travel
destination?
3. What are the major challenges for the tourism industry which arise from
eWOM?
4. What are the recommendations to manage positive eWOM in the tourism
industry?
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1.7 Research hypothesis
Hypothesis 1
H0: There is no relationship between the searchers‟ intent and consumer choice of a
travel destination
H1: There is a positive relationship between the searchers‟ intent and consumer
choice of a travel destination
Hypothesis 2
H0: There is no relationship between trustworthiness of messages and consumer
choice of a travel destination
H1: There is a positive relationship between trustworthiness of messages and
consumer choice of a travel destination
Hypothesis 3
H0: There is no relationship between senders‟ expertise and consumer choice of a
travel destination
H1: There is a positive relationship between senders‟ expertise and consumer choice
of a travel destination
Hypothesis 4
H0: There is no relationship between source similarity and consumer choice of a
travel destination
H1: There is a positive relationship between source similarity and consumer choice
of a travel destination
1.8 Chapter summarisation
Chapter one provides the introduction to the study. It provides an introduction to the
tourism industry, introduction to the study topic. It identifies the importance of the
conducting the research and how this study can add value to enhance the consumer
choice of destination in tourism industry. Problem statement, research aims,
research questions and research hypothesis are put forward in this chapter.
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The researcher develops the literature review in the chapter two. Different views and
statements developed by different writers are gathered in developing the literature
review. Research methodology is described in the third chapter. The researcher
explains research design, research approach and develops the conceptual
framework in this chapter. Sampling techniques, data collection methods and data
analysis methods are stated in the chapter as well.
Chapter four covers the data analysis and data presentation. Researcher uses
diagrams, charts and tables to present data and SPSS 20 to analyse data. Chapter
five carries out the conclusion and discussion based on the research findings.
Researcher draws the research conclusion and develops answers to research
questions. Recommendations are built up based on the conclusion and researcher
develops discussions to initiate further research studies.
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Chapter 2: Literature Review
The main objective of the Literature Review chapter is to develop the foundation to
the research study and build the theoretical framework accordingly. This chapter
explains the concept of the Electronic Word of Mouth (eWOM), consumer choice in
travel destination and the impact of eWOM towards the travel destination selection.
Related literature is examined to analyse the concepts, develop dimensions to
measure concepts, create theoretical framework and formulate the research
questionnaire.
2.1 Word of Mouth (WOM)
‘One customer well taken care of could be more valuable than $10,000 worth of
advertising’ is a famous saying by Jim Rohan who was an American entrepreneur on
the significance of the Word of Mouth. Word of mouth can be identified as one of the
most prominent sources of information and Katz and Lazarfeld (1955) explained
word of mouth has a bigger impact than advertising in buying decision process.
Word of Mouth (WOM) is defined as the communication process between
consumers about a product, service, brand or an organisation which is autonomous
from commercial stimulus (Silverman, 2001). Cheung (2008) explained the word of
mouth communication does not misrepresent the truth of the consumption of a
product or service as it occurs among people informally and without any commercial
influence. Westbrook (1987) explained the WOM as the communication among
consumers about the possession, usage and features of a product or service based
on the consumption. Pollach (2006) introduced WOM as a „person-to-person
communication‟ which occurs between two or more consumers.
Word of Mouth communication often happens among family, relatives, friends and
colleagues (Sandes and Urdan, 2013). Since the receiver is aware that the sender
has no intention to get financial benefits out of the comment on the product or
service, the credibility level is mostly high (Casielles, 2013). WOM allows consumers
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to share their opinions and experiences on product or service in a free manner and
the interaction of WOM communication is high (Hawkins, 2004). Steffes and Burgee
(2009) identified that the WOM influence towards the buyer buying decision process
is an extensive area in conducting academic researches as the impact is generous in
consumer decision making process.
Furthermore, WOM can be either positive or negative but it shapes the consumer
buying decision process, image, perception and attitude towards a product.
Therefore WOM is considered as an influential marketing communications medium
which is out of control from the organisation (Jansen, 2009). Ditcher (1966) identified
four motives behind the WOM and developed the Ditcher typology. Later on Engel,
Blackwell and Miniard (1993) improved the typology by adding a new factor. These
motives are involvement, self enhancement, concern for others, message intrigue
and dissonance reduction.
Involvement describes the level of interest towards a product or service and when
the interest level is high consumer spreads their opinions on the consumption. Self
enhancement describes the desire of consumer to gain an attention or higher
position via sharing their consumption experience on a specific product or service.
Another motive behind WOM is the concern people have for others and aim of the
WOM is helping the other consumers to make their purchasing decisions better.
Message intrigue motive explains a psychological behaviour of consumers as when
they feel proud of their decision they talk about it. Finally Engel, Blackwell and
Miniard identified reducing dissonance as a motive behind WOM. In this situation
consumers want to exculpate doubts with regard to a product without receiving any
financial benefit, Butter (1998) identified this customer group as the most valuable
promoters for a brand.
With the growth and popularity of internet, it has become the main mode of daily
basis communication in human life. As a result of that word of Mouth shifted from
physical level to global electronic level which emerged as Electronic Word of Mouth
(eWOM).
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2.2 Electronic Word of Mouth (eWOM)
Today the internet has become main medium of communication in day to day life.
According to Internet Live Stats research (2015) 3.4 billion global internet users
which represent 436.1% from the total world population. Google has become the
most popular search engine in the world where 40,000 queries searched per second
and 1.2 trillion searches per day. According to Social Media Today research (2016)
YouTube has become the next largest search engine 3.25 billion of hours of videos
are watched per month. Social networking has become another powerful medium
around the world as 1 million new active users connect to social media accounts
from their mobiles daily (Hubspot, 2015). Social media platforms such as Facebook,
Twitter, Instagram and Snapchat have members respectively as follows 1.71 billion,
320 million, 400 million and 100 million. Average number of friends on Facebook is
around 338 and Facebook and Whatsapp together handle 60 billion messages
around the world (Media Watch, 2016). 61% mobile search results ended up with an
online purchase and 78% of people tweet a complaint against a brand every hour.
As mentioned above, internet 2.0 has created an opportunity to share information,
opinions and experiences (Mayfield, 2008). This information can be related to
products, services, organisations and brands and since it is created by consumers it
is known as „user generated content‟. Electronic Word of Mouth (eWOM) is defined
as an effort by former, potential, existing or actual consumer to share feature,
knowledge or opinion of a product or service based on their personal experience
(Almana and Mizra, 2013). eWOM is virtual and it spreads around everyone on
internet but traditional WOM is physical and limited between the sender and receiver
(Buttle, 1998). eWOM contains higher breadth of information, wider access to
information, is faster and has no geographical boundaries compared to traditional
WOM. Unlikely to traditional WOM, eWOM can occur among people and groups who
have no relationship, similarity or prior communication.
2.2.1 Motives of eWOM
According to the complaint theory developed by Lee and Cude (2012), consumers
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are willing to share their satisfaction levels via internet especially when they are
dissatisfied with the consumption. Research says when a user is dissatisfied they
are most likely to choose internet as the medium to share their bad experiences or to
make a public complaint against a brand. Henning and Thurau (2004) identified four
motives behind the eWOM. They are intention to gain their own social good on
internet, to maintain their social image as social wellbeing seekers, actually with the
intention to help others to survive in the business world and finally to enhance their
self-esteem.
2.2.2 Potential results of eWOM
There are three potential results of eWOM; positive, negative and neutral (Anderson,
1998). Foreman, Ghose and Wiesenfeld (2006) stated that the eWOM can directly
influence on sales of a product or service as it plays a key role in buyers‟ buying
decision process. According to a research conducted by Chevalier and Mayzlin
(2006) it is figured as the positive eWOM supports for quality online purchases
where the negative eWOM negatively impacting on sales. And also they mentioned
negative eWOM has stronger influence than positive eWOM. In the end of the year
2016, Liu conducted a similar research and came up with a different conclusion as
negative eWOM has no influence on buyer decision processes or sales of particular
product but it created an indirect promotion on the product. However several authors
have concluded that the eWOM has direct influence on the sales as it plays a key
role in consumers‟ mind-set. But it is said if a consumer has already purchased and
consumed a product although that person received negative extreme eWOM on the
product, reaction in buying that product will not change (Herr, Kardes and Kim
(1991).
2.2.3 Benefits of eWOM
Today information related to any product, service, organisation or brand is available
and highly accessible to anyone via internet regardless of the geographical location
or time (Zarrad and Debai, 2015). Users can search what they want to know at any
time using search enquiries on search engines and the search engine will index
more than ten thousand results within one second without any cost (Sandes and
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Urdan, 2013). Google (2014) developed the concept called zero moment of truth
based on this opportunity. As customers are now buying a product or service with a
prior knowledge and information, confusions and doubts are limited at the moment of
purchase. Consumers can ask any question on search engines to gain knowledge
about a product and overall ratings on products and services are available on
internet (Allsop, Bassett and Hoskins, 2007). People can gather information,
compare with alternatives available and make purchasing decisions before
committing financially towards a brand which is introduced as a new phenomenon
named „theory of planned behaviour‟ (Severi, Ling and Nasermoadeli, 2014).
Consumers have the opportunity to share their product knowledge, satisfaction
related information and experiences on consumption on internet without anyone‟s
permission (Takhire and Joorshari, 2015). Web 2.0 has created a digital space for
public conversations around the world. If a consumer is satisfied with a product he or
she can recommend it to another consumer (Buttle, 1998). eWOM has become a
complain raising medium in consumer world. Consumers can make complains in
public level or anonymous manner against the brand. With the support of eWOM,
traditional buyer buying process has changed and enhanced and eWOM plays a key
role in consumers‟ mindset (Keitzmann and Canhoto, 2013).
Consumers have become brand promoters, brand consultants and brand
ambassadors from their involvement in eWOM (Media Watch, 2016). Nowadays
people can create and enhance their own social online image using eWOM and they
can achieve self-esteem via talking about their life styles and experiences in
consumer world (Sharma, Arroyo and Pandey, 2012). People have become bloggers
today and share inspirational content around the world. People identify new friends,
people with similar desires and interest and mutual ideas on internet. Online
communities have become knowledge and experience sharing mediums (Abalassei
and Sandu, 2016).
eWOM has no commercial involvement but it has created a commercial opportunities
in the consumer world (Almana and Mirza, 2013). There are organisations whose
main operations are managing eWOM across different industries. For instances, Trip
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Advisor is a global website which manages reviews and content of tourism and
hospitality industrial organisation they enhance the consumer buying decisions via
eWOM and earning financial benefits from that (Trip Advisor, 2016).
2.2.4 Mediums of eWOM of travel
There are several mediums available today where consumers can share
consumption related information around the world. They can be summarised as
follows;
i. Customer testimonials on websites: Customers who consume travel products
from a brand are asked to fill feedback form after their experience. These reviews
are published on the websites with the permission of customers to promote their
products and used to calculate overall travellers‟ ratings (Seweryn, 2013).
ii. Online review websites: Some websites who share and post traveller
information on the brands and destinations with the objective of helping other
travellers. For example, Trip Advisor, Oyster, Zomato, Airline Quality, Trip Expert
and Travel Post. Trip Advisor can be identified as the most popular review website
for tours, hotels, destinations and activities. Oyster share information about hotels
and accommodation and Zomato review restaurants. Airline Quality reviews and
compares airline packages (Media Watch, 2016).
iii. Travel blogs: Blogging has become a new trend in travellers‟ journey as they
share their experiences, inspire others and earn money from their blogs. eMarketer
(2010) records 30% increase in number of travel bloggers in the year 2010
compared to 2007. Bloggers use Facebook, Twitter and Instagram in promoting their
blog and they write on their experiences, post photos, upload food recipes and tips in
travelling (Hubspot, 2016).
iv. Social media: Social media is a one of the fasted growing mediums in terms
of number of platforms and number of members. Hubspot (2016) recorded that
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internet users in the world have an average of 5.54 social media platforms and 2.3
billion active social media users around the world. Social media is one of the informal
but most influential sources in tourism industry.
v. Mobile applications: Media watch records that more than 40% travel search
enquiries come via smart phone devices (Internet Live Stats, 2016). Identifying the
growing demand coming across mobiles, travel companies have introduced useful
mobile applications. For instances Hipmunk, Sky Scanner, Lounge Buddy, Trip It,
Pack point, Trip Advisor, Kayak and Time Out can be introduced.
2.2.5 Dimensions of eWOM
Researcher has identified four dimensions based on the critical literature review
conducted, in measuring the impact of eWOM with regard to tourism industry.
Searchers‟ intent
Searchers‟ intention is one of the identified dimensions in measuring the eWOM
impact. This occurs on the searchers‟ perspective as it explains to what extent the
searcher involve physically and psychologically in searching eWOM on the internet
(Steffes and Burgee, 2009). It describes as the importance of searching eWOM
messages on internet before making a buying decision as the eWOM
recommendations are vital to make decisions (Cheung, Luo, Sia and Chen, 2009).
Arndt (1967) argued if a consumer is seeking more eWOM on internet or digital
spaces that person has higher probability to influence by eWOM than a normal
consumer. Bansal and Voyer (2000) corroborated the conclusion from their own
research and identified consumers are more likely to seek information when the
information is highly accessible on internet. As researcher has identified searchers‟
intention as a dimension in measuring the impact of eWOM research hypothesis has
developed as follows;
Hypothesis 1
H0: There is no relationship between the searchers’ intent and consumer choice of a
travel destination
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H1: There is a positive relationship between the searchers’ intent and consumer
choice of a travel destination
Trustworthiness of message
Trustworthiness of message is identified under the source credibility in eWOM
communication. This defines the degree of trust and credibility of the source and the
message to accept eWOM as a source of information in making a consumer decision
(Kelman and Hovland, 1953). Transparency of the message, writing style and
method of presenting the message can be identified as indicators in measuring the
trustworthiness of message (Fan and Miao, 2012). Unlike the traditional word of
mouth, internet shares eWOM among people who have no relationships or prior
communication but Senecal and Nantel (2004) argued that familiarity has no impact
on the trustworthiness of the message. Researcher has developed following
research hypothesis in terms of measuring the impact of eWOM.
Hypothesis 2
H0: There is no relationship between trustworthiness of messages and consumer
choice of a travel destination
H1: There is a positive relationship between trustworthiness of messages and
consumer choice of a travel destination
Senders‟ expertise
Expertise of the communicator or message sender can be vital in terms of measuring
the impact of the eWOM towards consumer decision making process. Boush and
Kahle (2001) argued that to inspire or influence one‟s decision, the information
sender should be an expert person in the key area and also relevant knowledge,
professionalism and experience should shape the personal message to become a
source of decision making. Bloch and Richins (1986) stated that a consumer with a
higher expertise can easily make a correct purchase decision based on their
gathered knowledge and previous experience. Gilly, Graham, Wolfinbarger and Yale
(1998) introduced expertise consumers as consultants and Solomon (1997)
identified expertise consumer as one of the critical information sources in influencing
other consumer decisions. Researcher has developed following hypothesis based on
the literature gathered under the senders‟ expertise.
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Hypothesis 3
H0: There is no relationship between senders’ expertise and consumer choice of a
travel destination
H1: There is a positive relationship between senders’ expertise and consumer choice
of a travel destination
Source similarity
Steffes and Burgee (2009) introduced the theory of homophily which explained
people are most likely to believe ideas and thoughts from a similar source. They
explained that consumers‟ buying decisions are influenced by other consumers from
same gender, education, status and social class. Wangenheim and Bayon (2013)
explained individuals are likely to compare their own self with the information source
in terms of demographic elements in making their purchase decisions. Lazarsfeld
and Merton (1954) stated consumers can only develop homogeneity among relations
and friends and argued these groups as the only influential group in consumer
mindset. Ruef (2003) argued that source similarity can become highly persuasive in
decision making when two parties share similar desires and understand motives
behind the desires. Following hypothesis has developed by the researcher according
to the gathered literature from published journal articles.
Hypothesis 4
H0: There is no relationship between source similarity and consumer choice of a
travel destination
H1: There is a positive relationship between source similarity and consumer choice
of a travel destination
2.3 Consumer choice of travel destination
Different travellers seek different information in making a decision to travel to a
destination; these factors are always subjective and unique. According to Cohen and
Avalli (2004) type of food and beverage is one of the most critical factors travellers
search in terms of deciding of a travel destination. As food is one of the basic needs
of humans‟ lives, it plays a considerable role in travelling too. Food is not only a
factor in deciding a travel location but also a fact that creates an attraction towards a
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destination (Tikkanen, 2007). As food expenses of a tour covers more than 30%
from the overall tour cost, travellers give priority towards that in terms of deciding
their destination and tour (Graziani, 2003). Weather and climate conditions are
another critical factor for travellers when they are in the process of decision making.
Travellers most likely to research best time to travel, current climate conditions and
weather indicators before they make a decision to travel to a particular destination
(Sandes and Urdan, 2013). Almana and Mirza (2013) identified local culture and
languages as the most important factors in travellers minds when they start planning
to travel new destination. Consumer choice of a travel destination depends upon the
level knowledge the traveller has and the level of quality information gathered on it
(Seweryn, 2013).
2.4 Relationship between Electronic Word of Mouth and
Consumer choice in a travel destination
eWOM has shaped up and enhanced the travel and tourism industry with the
emergence of internet and social media. It is recorded that over USD 10 billion travel
purchases were influenced by eWOM in the year 2006 (Compete, 2007). Further,
Compete mentioned, one out of every three travellers consider and give priority to
information available on internet before making travel or hospitality related decisions.
Gretzel and Yoo (2008) stated in excess of 70% travellers read and consider online
reviews of previous travellers in planning their trip and that traveller ratings are
considered as their main source of information. Travel Industry Wire (2007) stated
more than 84% changed their travel plans according to travel reviews of experienced
travellers. Yang (2008) argued that the written style of the review, expertise of the
traveller and appropriateness of ratings define the strength of online review. Bae and
Lee (2011) explained that the perceived risk of purchase decisions in travel and
tourism are minimised due to traveller reviews.
Trip Advisor as the leading website for reviews of destinations, travel packages,
food, hotels and other activities, continuously update their website to cater their 350
million of monthly users. Over 385 million travellers post their reviews and travel
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related questions on Trip Advisor and it owns more than 6.6 million travel business
entities comprising 135,000 destinations. Travellers shared 70 million photos per
month and 255 new members are adding posts every minute. More than 340 million
people have downloaded Trip Advisor mobile application and 50% users seek
information on Trip Advisor before they make their travel decisions. Bone (1992)
argued that some people shared information on their experience even during the
consumption which has become very popular nowadays. As travellers used to
check-in in Foursquare when they travel, Instagram pictures of food while dining and
tweet while waiting for their transport.
2.5 Theoretical framework
Based on the literature review conducted by the researcher, searchers‟ intent,
trustworthiness of message, senders‟ expertise and source similarity are identified as
independent variables to measure the impact of eWOM. Theoretical framework can
be drafted as follows;
Figure 1: Theoretical framework
Searchers‟ Intent
Trustworthiness of
message
Senders‟ expertise
Source similarity
Consumer choice
of a destination
Effects of
Electronic Word of
Mouth (eWOM)
Independent Dependent variable
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Chapter 3: Research Methodology
The main objective of the Research Methodology chapter is to explain the
methodology researcher used in terms of conducting the research study. Based on
the developed literature review, independent variable, dependent variable and
dimensions to measure the impact of electronic word of mouth towards consumer
choice of travel destination are identified by the researcher. This chapter covers
research design, conceptual framework, operationalization of constructs, methods of
data collection, and data analysis, sampling, questionnaire design and validity and
reliability measures of the questionnaire.
3.1 Research problem
Research problem states as the impact of the electronic word of mouth towards the
consumer choice in a destination with regard to tourism industry.
3.2 Research approach
Researcher developed the foundation of the research study based on the literature
and built-up the theoretical framework. Hypotheses were developed to evaluate the
impact of electronic word of mouth towards the consumer choice in destination. A
survey is conducted by the researcher to gather primary data from the selected
sample. Researcher will conduct a statistical analysis based on the gathered data to
test the hypotheses. Research conclusion will base upon the critical discussion and
researcher will provide recommendations to fill the identified gap.
3.3 Research design
Research design is explained based on following sections;
i. Type of the study
Main purpose of the research study is to measure the impact of electronic
word of mouth on consumer choice in travel destination. This can be identified
as a causal research study which emphasises on measuring the relationship
between electronic word of mouth and selecting a travel destination.
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ii. Study settings
Research survey conducted without any control of the sample based on the
natural conditions of the external environment. Therefore the study setting can
be identified as non-contrived as the influence of researcher is at minimum
level.
iii. Time horizon
Researcher collected data at a single point of time from a single sample,
which is known as a single cross sectional study. Researcher collected
primary data from the sample during May, 2016.
3.4 Operationalization
Following table describes the operationalization of key concepts used by the
researcher when conducting the research study.
Variable Dimension Definition Indicators used to measure
the dimension
Electronic
Word of
Mouth
(eWOM)
Searchers‟
intent
To what extent
searcher has
intention to gather
information
Frequency of reading online
reviews
Preference in gathering
information
Search for reviews before
making a decision
Number of websites access
before making a decision
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Trustworthiness
of message
To what extent
searcher trust
information
available on
internet
Biasness of customer review
Trust of customer generated
content
Reviews from a familiar
person
Reviews with real names than
fake names
Reviews with traveller pictures
Senders‟
expertise
Expert knowledge
and experience of
the information
sender
Frequent reviews from a
specific traveller
Agreement from other people
to a specific review
Spellings and grammar
mistakes of review
Reviews from regular
travellers than first time
travellers
Source similarity Similarity of sender
and searcher in
terms of believing
information
Preference for reviews from
same gender
Preference for reviews from
same age level
Preference for review from
same residence area
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Choice of a
travel
destination
Customer
choice
To what extent
reviews influence
the traveller in
terms of selecting a
travel destination
Getting know of new
destinations from reviews
Getting know of tips in
travelling from destinations
Preference to travel to a
destination with higher ratings
Negative attitude towards
destinations with negative
reviews
Confidence about a
destination based on reviews
Worry on travel decision
without reviews
Not selecting a destination
without reviews
Table 1: Operationalization of key concepts
3.5 Method of data collection
Researcher gathered both primary and secondary data for the study. Secondary
data was gathered to develop the constructs, dimensions, indicators and theoretical
framework. Journal articles, research articles, books and online accessible articles
were the source for secondary data. Primary data was collected from the survey
conducted by the researcher.
3.6 Method of data presentation
Tables, diagrams and charts are used to summarise and present information
gathered by the survey. These are derived from Statistical Package for Social
Sciences (SPSS) 20 version.
3.7 Method of data analysis
Data analysis is done using the Statistical Package for Social Sciences (SPSS) 20
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version. Statistical concepts and models such as frequencies, descriptive, scatter
plot analysis and Pearson correlation analysis are used as methods of data analysis.
3.8 Sampling
Population of the study can be identified as the people who search information on
internet. 120 of people from different countries, different age levels and different
education levels are taken into consideration as the sample. Researcher used
convenience sampling technique in selecting the sample which is identified as a non-
probability sampling technique.
3.9 Questionnaire design
Self-completion and structured questionnaire is distributed via online among the
sample to gather primary data. Questionnaire consists with three sections as follows;
i. Demographic information
Demographic information section gathers information about the age, gender,
education and occupation and internet usage of the sample in order to
examine the personal characteristics.
ii. Electronic Word of Mouth
Section two gathers level of agreement on the impact of Electronic Word of
Mouth (eWOM) in their decisions. It is examining the searchers‟ intent,
trustworthiness of message, sender‟s expertise and source similarity using 5
point likert scale.
iii. Choice of travel destination
Section three gathers information about the choice of travel destination using
seven questions. These questions are structured as 5 point likert scale
questions on the level of agreement for customer choice statements. Then
two open ended questions are asked to gather information on the ways that
respondents get information and factors considered in decision making.
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3.10 Reliability and Validity measures
According to Malhothra (2010) reliability refers to the degree to what extent set of
constructs developed by the researcher are consistent with its measurements.
Reliability is measured using two methodologies; they are stability and internal
consistency.
3.10.1 Stability
Stability is the degree of changes in responses if the questionnaire is completed by
the same sample two times. It can be measured using test-retest technique but the
researcher didn‟t get answers from the same sample twice therefore the stability is
not computed.
3.10.2 Internal Consistency
Internal consistency describes the degree of correspondence questions in terms of
measuring a specific dimension. Cronbach‟s Alpha is used to calculate the internal
consistency and each value should be greater than 0.6 to consider as internally
consistent.
Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha
Based on
Standardized
Items
N of
Items
.705 .708 4
Table 2: Cronbach‟s Alpha for Searchers‟ intent
Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha
Based on
Standardized
Items
N of
Items
.726 .723 5
Table 3: Cronbach‟s Alpha for Trustworthiness of message
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Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha
Based on
Standardized
Items
N of
Items
.611 .637 4
Table 4: Cronbach‟s Alpha for Senders‟ expertise
Reliability Statistics
Cronbach's
Alpha
Cronbach's Alpha
Based on
Standardized
Items
N of
Items
.825 .826 3
Table 5: Cronbach‟s Alpha for Source Similarity
Table no 2 – 5 show Cronbach‟s Alpha values of dimensions of eWOM.
Dimension Cronbach‟s Alpha Condition Reliability
Searchers‟ intent 0.705 ≥ 0.6 Satisfied
Trustworthiness of message 0.762 ≥ 0.6 Satisfied
Senders‟ expertise 0.611 ≥ 0.6 Satisfied
Source similarity 0.825 ≥ 0.6 Satisfied
Table 6: Summary of Cronbach‟s Alpha: Reliability
Table above presents the summary of Cronbach‟s Alpha measures of each
dimension which is calculated using SPSS 20 and values of them are greater than
0.6 which fulfilled the condition for reliability. It could be concluded that the
questionnaire and dimensions are reliable to measure the developed construct.
3.10.3 Validity
According to Malhothra (2010) validity explains as to what extent the measurements;
processes and tools are free from errors. Validity measures are based on two major
approaches, content validity and construct validity.
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3.10.4 Content validity
Sekaran (2003) explains content validity as the strength of dimensions of a concept
in terms of measuring it. Content validity is measured based on the literature review,
simply it explains how well the researcher has identified and investigated on the
concepts using journal papers and published researches. As the researcher has
conducted a comprehensive and critical literature survey content validity can be
considered as high.
3.10.5 Construct validity
Sekaran (2003) explains the construct validity as to what extent the measurement
tools and processes apprehend the concepts of research. Factor analysis is used to
measure the construct validity.
Techniques and conditions in measuring validity can be summarised as follows;
i. Keiser – Meyer Olkin (KMO) – KMO > 0.5
ii. Average Variances Extracted (AVE) – AVE > 0.7
iii. Composite Reliability (CR) – CR > 0.5
iv. Bartlett‟s Sphercity – Sig. value < 0.05
Searchers‟ intent
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.619
Bartlett's Test of
Sphericity
Approx. Chi-Square
131.67
4
Df 6
Sig. .000
Table 7: KMO and Bartlett‟s test – Searchers‟ intent
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Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 2.195 54.866 54.866 2.195 54.866 54.866
2 .975 24.387 79.253
3 .559 13.982 93.235
4 .271 6.765 100.000
Table 8: Total variance explained – Searchers‟ intent
Component Matrixa
Component
1
I often read customer testimonials when I see
them available on the internet
.541
I prefer to gather information about destinations
from customer testimonials on websites
.877
I often search for reviews about a particular
destination before I make a decision to travel
.859
I visit more than five websites to read about a
destination before making a choice
.630
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
Table 9: Component Matrix – Searchers‟ intent
Trustworthiness of message
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.710
Bartlett's Test of
Sphericity
Approx. Chi-Square
137.23
3
Df 10
Sig. .000
Table 10: KMO and Bartlett‟s test – Trustworthiness of message
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Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 2.710 54.196 54.196 2.710 54.196 54.196
2 .923 18.464 72.660
3 .771 15.415 88.075
4 .596 11.925 100.000
5
1.645E-
016
3.290E-015 100.000
Extraction Method: Principal Component Analysis.
Table 11: Total variance explained – Trustworthiness of message
Component Matrixa
Component
1
I believe customer testimonials on websites about
their travel experiences are not biased
.577
I trust customer generated information on a
destination than the website content
.920
I prefer reviews on websites written by my friends
or people I know
.531
I prefer reviews shared with real names of the
traveller than reviews with fake names
.632
I trust reviews shared with pictures of the traveller
than general reviews
.920
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
Table 12: Component Matrix – Trustworthiness of message
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Senders‟ expertise
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.548
Bartlett's Test of
Sphericity
Approx. Chi-Square
118.49
9
Df 6
Sig. .000
Table 13: KMO and Bartlett‟s test: Senders‟ expertise
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 2.008 50.195 50.195 2.008 50.195 50.195
2 .891 22.268 72.463
3 .868 21.695 94.158
4 .234 5.842 100.000
Extraction Method: Principal Component Analysis.
Table 14: Total variance explained: Senders‟ expertise
Component Matrixa
Component
1
I trust reviews if the specific reviewer has
submitted reviews frequently on their travel
experiences
.850
I tend to believe reviews if few people have liked
or agreed on it in comments
.481
Spelling and grammar mistakes in customer
testimonials negatively affect on my decisions
.482
I prefer to read reviews from people who travel
often than first time travellers
.906
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
Table 15: Component matrix: Senders‟ expertise
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Source similarity
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy.
.719
Bartlett's Test of
Sphericity
Approx. Chi-Square
129.45
3
Df 3
Sig. .000
Table 16: KMO and Bartlett‟s test: Source similarity
Total Variance Explained
Component Initial Eigenvalues Extraction Sums of Squared
Loadings
Total % of
Variance
Cumulative
%
Total % of
Variance
Cumulative
%
1 2.226 74.193 74.193 2.226 74.193 74.193
2 .419 13.968 88.161
3 .355 11.839 100.000
Extraction Method: Principal Component Analysis.
Table 17: Total variance explained: Source similarity
Component Matrixa
Component
1
I prefer to read and believe reviews about a
destination from a reviewer from the same
gender
.864
I prefer to read and believe reviews about a
destination from a reviewer from the same age
level
.847
I prefer to read and believe reviews about a
destination from a reviewer from the same
residence area
.873
Extraction Method: Principal Component Analysis.
a. 1 components extracted.
Table 18: Component matrix: Source similarity
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Researcher has used KMO and Bartlett‟s significance value in measuring the validity
of the dimensions. Summary of measures and the conditions are presented in
following table.
nsion KMO Bartlett‟s
Sphercity
Sig.
value
Total variance
explained
Conclusion
Searchers‟ intent 0.619 6 0.000 54.886 Satisfied
Trustworthiness 0.710 10 0.000 54.196 Satisfied
Senders‟ expertise 0.548 6 0.000 50.195 Satisfied
Source similarity 0.719 3 0.000 74.193 Satisfied
Condition KMO > 0.5 Sig. value <0.05 Should load for
one factor
Table 19: Summary of validity values
All factors have loaded into one factor and total variance explained values are
greater than 50%. According to the summary, four dimensions used to measure
searchers‟ intent have contributed 54.89% in measuring it, five dimensions used to
measure trustworthiness have contributed 54.2% in measuring it, four dimensions
used to measure senders‟ expertise have contributed 50.2% in measuring it and
three dimensions used to measure source similarity 74.2% in measuring it. As these
dimensions have met the condition of validity, conclusion can be drawn as
dimensions are valid to measure the constructs.
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Diagram 1: Gender composition
Chapter 4: Data Analysis and Presentation
The main objective of this chapter is to present data based on the data analysis of
the research study. Initially the sample profile will be analysed to develop a general
idea on the sample of the research study. Statistical analysis will be conducted by
the researcher to analyse the impact of eWOM towards selecting a travel
destination. SPSS 20 version used to conduct the statistical analysis.
4.1 Sample profile
Well-structured and self-administrated questionnaire was distributed among 120
respondents online. All questions are answered accurately and there are no missing
values in the data set. Therefore responses from 120 participants are taken into the
research study.
4.1.1 Gender
The diagram no 1 shows the gender composition
of the sample of the research study. 52.5% are
female participants in the selected sample. Table
no 20 shows the gender frequencies.
Gender
Frequency Percent
Valid
Percent
Cumulative
Percent
Male 57 47.5 47.5 47.5
Female 63 52.5 52.5 100.0
Total 120 100.0 100.0
Table 20: Gender composition
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Diagram 2: Age composition
Diagram 3: Education level
4.1.2 Age
The diagram no 2 shows the age
composition of the sample in the
research study. 46.67% of
participants are from the age
group 21 – 30 and 42.5% of
participants are from the age 31 -
40. All together 89.2% of
participants are from 21 – 40 age
groups and the table no 21 shows
the age frequencies.
Age
Age Frequency Percent
Valid
Percent
Cumulative
Percent
21-30 56 46.7 46.7 46.7
31-40 51 42.5 42.5 89.2
41-50 8 6.7 6.7 95.8
Over 50 5 4.2 4.2 100.0
Total 120 100.0 100.0
Table 21: Age composition
4.1.3 Education level
The diagram 3 and the table number
22 explain the education level
composition of the sample of the
research study. 50.83% of
participants are from graduate level
and it can be considered as the
highest proportion from the sample.
32.5% of participants have gained
postgraduate or higher qualifications.
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Diagram 4: Occupation level composition
Education Level
Frequency Percent
Valid
Percent
Cumulative
Percent
High School / Advanced Level 15 12.5 12.5 12.5
Graduate level 61 50.8 50.8 63.3
Postgraduate level & over 39 32.5 32.5 95.8
Other 5 4.2 4.2 100.0
Total 120 100.0 100.0
Table 22: Education level composition
4.1.4 Occupation
Occupation level composition is
illustrated in the diagram no 4
and tables no 23 and 51.67% of
participants are from the junior
executive and executive level.
Management and top
management level participants
cover 43.3% of the sample.
Occupation Level
Frequency Percent
Valid
Percent
Cumulative
Percent
Junior executive / Executive level 62 51.7 51.7 51.7
Management / Top management level 52 43.3 43.3 95.0
Self employed 3 2.5 2.5 97.5
Unemployed 3 2.5 2.5 100.0
Total 120 100.0 100.0
Table 23: Occupation level composition
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Diagram 5: Internet use
composition
4.1.5 Use of internet
Use of internet was measured by
the question „number of hours
sent on internet per day‟ and the
diagram 5 and table 24 describe
the use of internet. 30.83% of
participants spent more than 8
hours on internet per day. 28.3%
of participants spent 5 – 8 hours
on internet therefore over 50% of
participants are heavy internet
users.
No. of hours spent on internet per day
Frequency Percent
Valid
Percent
Cumulative
Percent
More than 8 hours 37 30.8 30.8 30.8
5 - 8 hours 34 28.3 28.3 59.2
2 - 5 hours 28 23.3 23.3 82.5
Less than 2 hours 18 15.0 15.0 97.5
Not regularly 3 2.5 2.5 100.0
Total 120 100.0 100.0
Table 24: Internet use composition
4.2 Dimensions of eWOM
Searchers‟ intent, trustworthiness of message, senders‟ expertise and source
similarity are taken into consideration as dimensions of eWOM. This section will
analyse the agreement levels of each indicator in terms of measuring the impact of
eWOM towards selecting a travel destination.
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Diagram 6: Interest to read testimonials on internet (SI1)
4.2.1 Searchers’ intent
Searchers‟ intent dimension is measured using four indicators, they are;
Reading testimonials often when user see them on the internet
The diagram 6 and the table
25 describe the levels of
agreement for the question „I
often read customer
testimonials when I see them
available on the internet‟.
21.67% of participants from
the sample strongly agreed
and 50.83% of participants
from the sample agreed. No
one strongly disagreed with
the statement. People often
read customer testimonials
when they are available on the
internet.
I often read customer testimonials when I see them available on the internet
Frequency Percent Valid
Percent
Cumulative
Percent
Disagree 9 7.5 7.5 7.5
Neither disagree or nor agree 24 20.0 20.0 27.5
Agree 61 50.8 50.8 78.3
Strongly agree 26 21.7 21.7 100.0
Total 120 100.0 100.0
Table 25: Interest to read testimonials on internet (SI1)
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Diagram 7: Gather information from customer testimonials (SI2)
Gather information about destinations through customer testimonials
The diagram 7 and the table 26
describe the levels of agreement
for the question „I prefer to gather
information about destinations
from customer testimonials on
websites‟. 18.33% of participants
from the sample strongly agreed
and 52.5% of participants from
the sample agreed. 1.67% of
participants strongly disagreed
and 6.67% disagreed with the
statement. Majority of people
prefer to gather information about
destinations via customer
testimonials on websites.
I prefer to gather information about destinations from customer testimonials on websites
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 2 1.7 1.7 1.7
Disagree 8 6.7 6.7 8.3
Neither disagree nor agree 25 20.8 20.8 29.2
Agree 63 52.5 52.5 81.7
Strongly agree 22 18.3 18.3 100.0
Total 120 100.0 100.0
Table 26: Gather information from customer testimonials (SI2)
Student ID: 1524496 46
Diagram 8: Reviews before making the decision (SI3)
Often search reviews on a destination before travelling to the particular destination
Levels of agreements for the
question „I often search for
reviews about a particular
destination before I make a
decision to travel‟ are
explained in the diagram 8 and
frequencies are available on
the table 27. 40.83% of
participants strongly agreed
and 35.83% of participants
agreed on the statement. 2
participants from the sample
mentioned as they strongly
disagreed.
Majority of people read reviews on a particular destination before making their
decision to travel to that destination which shows that the impact from reviews is
substantial.
I often search for reviews about a particular destination before I make a decision to travel
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 2 1.7 1.7 1.7
Disagree 12 10.0 10.0 11.7
Neither disagree nor agree 14 11.7 11.7 23.3
Agree 43 35.8 35.8 59.2
Strongly agree 49 40.8 40.8 100.0
Total 120 100.0 100.0
Table 27: Search for reviews before travelling (SI3)
Student ID: 1524496 47
Diagram 9: Visit more than 5 websites (SI4)
Visit more than five websites to read reviews about a destination
The diagram 9 and the table
no 28 shows the level of
agreement on visiting more
than five websites to read
about a destination before
making a choice. 18.3% and
37.5% of participants from
the sample strongly agreed
and agreed to the statement
respectively. 24.17% are
neither agree nor disagree.
According to the sample
majority of people are not visiting more
than five websites to read about a destination, average number of people visit to
gather information.
I visit more than five websites to read about a destination before making a choice
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 5 4.2 4.2 4.2
Disagree 19 15.8 15.8 20.0
Neither disagree nor agree 29 24.2 24.2 44.2
Agree 45 37.5 37.5 81.7
Strongly agree 22 18.3 18.3 100.0
Total 120 100.0 100.0
Table 28: Visit more than five websites to read about a destination (SI4)
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Diagram 10: Biasness of the customer testimonials (TW1)
Overall level of agreement: Searchers‟ intent
Summary of the measures of the level of agreements for searcher‟s intent dimension
can be presented in the table no 29. Overall mean value for searchers‟ intent can
calculated as 3.8 and variance matrix is 0.497 which shows less variation from the
central tendency. Both median and mode values are 4, majority of participants from
the sample have shown an intention to search about destinations using customer
reviews.
Statistics
SI1 SI2 SI3 SI4 Searchers‟
Intent
Mean 3.87 3.79 4.04 3.50 3.8000
Median 4.00 4.00 4.00 4.00 4.0000
Mode 4 4 5 4 4.00
Std. Deviation .840 .878 1.040 1.092 .70532
Variance .705 .771 1.082 1.193 .497
Table 29: Overall central tendency of searchers‟ intent
4.2.2 Trustworthiness of message
Trustworthiness of message dimension is measured by using five indicators, they
are;
Believe customer generated testimonials as not biased to organisations
Levels of agreements to the
statement „I believe customer
testimonials on websites about
their travel experiences are not
biased‟ are presented on the
diagram 10 and the table no 30.
5.8% and 36.7% of participants
strongly agreed and agreed
respectively. 57.5% of participants
have either disagreed or neutral on
the biasness.
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Diagram 11: Trust customer content than website (TW2)
Majority of people do not believe the testimonials on websites are unbiased from
travel organisations.
I believe customer testimonials on websites about their travel experiences are not biased
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 4 3.3 3.3 3.3
Disagree 13 10.8 10.8 14.2
Neither disagree nor agree 52 43.3 43.3 57.5
Agree 44 36.7 36.7 94.2
Strongly agree 7 5.8 5.8 100.0
Total 120 100.0 100.0
Table 30: Biasness of the customer testimonials (TW1)
Trust customer generated content than website content
The diagram 11 and the table
no 31 show the levels of
agreements on the question
asked about the trust
between customer generated
content and website content.
Around 60.8% trust user
generated content than the
website content.
Majority of peopl trust or
prefer user generated
content on a destination than the website content.
I trust customer generated information on a destination than the website content
Frequency Percent Valid
Percent
Cumulative
Percent
Disagree 17 14.2 14.2 14.2
Neither disagree nor agree 30 25.0 25.0 39.2
Agree 57 47.5 47.5 86.7
Strongly agree 16 13.3 13.3 100.0
Total 120 100.0 100.0
Table 31: Trust customer content than website content (TW2)
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Diagram 12: Trust reviews from friends (TW3)
Prefer to believe testimonials from friends or people user knows
The diagram 12 and the table no 32
show the level of agreements of
believing testimonials from travellers
user know than general public.
Around 72.5% participants have
agreed with this statement. Majority
of people tend to trust testimonials
from people they know than general
reviews.
I prefer reviews on websites written by my friends or people I know
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 5 4.2 4.2 4.2
Disagree 10 8.3 8.3 12.5
Neither disagree or nor agree 18 15.0 15.0 27.5
Agree 44 36.7 36.7 64.2
Strongly agree 43 35.8 35.8 100.0
Total 120 100.0 100.0
Table 32: Trust reviews from friends (TW3)
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Diagram 13: Trust reviews with actual names
(TW4)
Diagram 14: Trust reviews with photos (TW5)
Trust reviews of travellers with real names than fake names
The diagram 13 and the table 33
show the agreement levels for
trusting traveller reviews with actual
names than fake names which
77.5% of participants agreed.
Majority of people trust reviews with
actual names than the fake and
funny names as it shows the
professionalism of the traveller.
I prefer reviews shared with real names of the traveller than reviews with fake names
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 3 2.5 2.5 2.5
Disagree 6 5.0 5.0 7.5
Neither disagree or nor agree 18 15.0 15.0 22.5
Agree 37 30.8 30.8 53.3
Strongly agree 56 46.7 46.7 100.0
Total 120 100.0 100.0
Table 33: Trust reviews with actual names (TW4)
Trust reviews of travellers with photos than general reviews
The diagram 14 and the table 34
show the trust of traveller reviews
with photos of travellers than general
reviews. 73.3% of participants have
agreed on this statement as majority
of people tend to believe what
travellers say when they prove it with
photos. Visuals of the testimonials
are important in gaining trust.
Student ID: 1524496 52
I trust reviews shared with pictures of the traveller than general reviews
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 5 4.2 4.2 4.2
Disagree 8 6.7 6.7 10.8
Neither disagree or nor agree 19 15.8 15.8 26.7
Agree 52 43.3 43.3 70.0
Strongly agree 36 30.0 30.0 100.0
Total 120 100.0 100.0
Table 34: Trust reviews with photos (TW5)
Overall level of agreement: Trustworthiness of message
Summary of the measures of the level of agreements for trustworthiness of message
dimension can be presented in the table no 35. Overall mean value for
trustworthiness of message can calculated as 3.77 and variance matrix is 0.47 which
shows less variation from the mean value. Median value is 3.8 as there is a
difference from the biasness indicator which recorded the median value as 3. High
agreement level occurred with the reviews with real names than fake names.
Statistics
TW1 TW2 TW3 TW4 TW5 Trustworthiness
Mean 3.31 3.60 3.92 4.14 3.88 3.7700
Median 3.00 4.00 4.00 4.00 4.00 3.8000
Mode 3 4 4 5 4 4.20
Std. Deviation .868 .893 1.104 1.015 1.047 .68337
Variance .753 .797 1.220 1.030 1.096 .467
Table 35: Overall central tendency of trustworthiness of message
4.2.3 Senders’ expertise
Senders‟ expertise dimension is measured by four indictors which are;
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Diagram 15: Trust reviews from frequent submitters (SE1)
Diagram 16: Trust reviews with likes (SE2)
Trust reviews from a traveller who submitted reviews frequently
The diagram 15 and the table
36 show the trust towards a
review from a traveller who
posts reviews frequently. No
one disagreed with this
statement and 80% of
participants agreed to the
point. Majority of people tend
to trust reviews from frequent
reviews submitters than
unknown submitters as it
expresses the expertise of traveller.
I trust reviews if the specific reviewer has submitted reviews frequently on their travel experiences
Frequency Percent
Valid
Percent
Cumulative
Percent
Disagree 5 4.2 4.2 4.2
Neither disagree or nor agree 19 15.8 15.8 20.0
Agree 66 55.0 55.0 75.0
Strongly agree 30 25.0 25.0 100.0
Total 120 100.0 100.0
Table 36: Trust reviews from frequent submitters (SE1)
Trust reviews with likes and comments from other people
The diagram 16 and the table 36
show the trust on reviews with likes
and comments of others. 56.7% of
participants agreed with the
statement and 36.7% of participants
have neutral feeling on this. Other
people‟s agreements have average
impact on trust.
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Diagram 17: Negative impact of Spellings and grammar
I tend to believe reviews if few people have liked or agreed on it in comments
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 1 .8 .8 .8
Disagree 7 5.8 5.8 6.7
Neither disagree or nor agree 44 36.7 36.7 43.3
Agree 54 45.0 45.0 88.3
Strongly agree 14 11.7 11.7 100.0
Total 120 100.0 100.0
Table 37: Trust reviews with likes (SE2)
Spellings and grammar mistakes negatively affect on my trust
The diagram 17 and the table 38
show the agreement for the
negative impact on trust due to
the spellings and grammar errors
of reviews. 63.3% of participants
agreed but 21.7% of participants
have neutral feeling towards
these errors. Spellings and
grammar mistakes have an
average impact of negativity.
Spellings and grammar mistakes in customer testimonials negatively affect on my decisions
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 3 2.5 2.5 2.5
Disagree 15 12.5 12.5 15.0
Neither disagree or nor agree 26 21.7 21.7 36.7
Agree 39 32.5 32.5 69.2
Strongly agree 37 30.8 30.8 100.0
Total 120 100.0 100.0
Table 38: Negative impact of Spellings and grammar (SE3)
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Diagram 18: Trust experienced travellers (SE4)
Trust reviews from regular travellers than first time travellers
The diagram 18 and the table no
39 explain the trust on reviews
from regular and experienced
travellers than first time travellers.
No one disagreed with this
statement and 79.2% participants
have agreed. People tent read
and trust reviews from
experienced travellers than the
first time travellers as they have
expertise in travelling than
general public.
I prefer to read reviews from people who travel often than first time travellers
Frequency Percent
Valid
Percent
Cumulative
Percent
Disagree 5 4.2 4.2 4.2
Neither disagree or nor agree 20 16.7 16.7 20.8
Agree 48 40.0 40.0 60.8
Strongly agree 47 39.2 39.2 100.0
Total 120 100.0 100.0
Table 39: Trust experienced travellers (SE4)
Overall level of agreement: Senders‟ expertise
Summary of the measures of the level of agreements for senders‟ expertise
dimension are presented in the table no 40. Overall mean value for senders‟
expertise can calculated as 3.88 and variance matrix is 0.362 which shows less
variation from the mean value. Median value and mode values are 4 and 4.25
respectively.
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Diagram 19: Reviews from same gender (SS1)
Statistics
SE1 SE2 SE3 SE4 Senders‟ Expertise
Mean 4.01 3.61 3.77 4.14 3.8813
Median 4.00 4.00 4.00 4.00 4.0000
Mode 4 4 4 4 4.25
Std. Deviation .761 .802 1.098 .843 .60196
Variance .580 .644 1.206 .711 .362
Table 40: Overall central tendency of senders‟ expertise
4.2.4 Source similarity
Source similarity dimension is measured by using three indicators which are;
Prefer to read and trust reviews from same gender
The diagram 19 and the table no
41 explain the preference for
reviews from the same gender.
84.2% of participants have
disagreed or have neutral feeling
on giving priority for reviews from
same gender. Only 19 participants
agreed with this statement so
gender similarity has lower level of
impact towards review preference.
I prefer to read and believe reviews about a destination from a reviewer from the same gender
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 29 24.2 24.2 24.2
Disagree 41 34.2 34.2 58.3
Neither disagree or nor agree 31 25.8 25.8 84.2
Agree 15 12.5 12.5 96.7
Strongly agree 4 3.3 3.3 100.0
Total 120 100.0 100.0
Table 41: Reviews from same gender (SS1)
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Diagram 20: Reviews from same age group (SS2)
Prefer to read and trust reviews from same age level
The diagram 20 and the table 42
explain the preference for reviews
from the same age levels. 60% of
participants have disagreed or
have neutral feeling on giving
priority for reviews from same age
group. But 48 participants agreed
with this statement therefore age
level similarity has average level of
impact towards review preference
I prefer to read and believe reviews about a destination from a reviewer from the same age level
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 13 10.8 10.8 10.8
Disagree 34 28.3 28.3 39.2
Neither disagree or nor agree 25 20.8 20.8 60.0
Agree 40 33.3 33.3 93.3
Strongly agree 8 6.7 6.7 100.0
Total 120 100.0 100.0
Table 42: Reviews from same age group (SS2)
Student ID: 1524496 58
Diagram 21: Reviews from same residence area (SS3)
Prefer to read and trust reviews from same residence area
The diagram 21 and the table
43 describe the preference
for reviews from same
residence area. 73.3% of
participants disagreed or
have neutral feeling on the
residence are which can
recognized as less important
factor in measuring impact of
eWOM.
I prefer to read and believe reviews about a destination from a reviewer from the same residence area
Frequency Percent
Valid
Percent
Cumulative
Percent
Strongly disagree 19 15.8 15.8 15.8
Disagree 39 32.5 32.5 48.3
Neither disagree or nor agree 30 25.0 25.0 73.3
Agree 29 24.2 24.2 97.5
Strongly agree 3 2.5 2.5 100.0
Total 120 100.0 100.0
Table 43: Reviews from same residence area (SS3)
Overall level of agreement: Senders‟ expertise
Summary of the measures of the level of agreements for senders‟ expertise
dimension are presented in the table no 44. Overall mean value for senders‟
expertise can calculated as 2.66 and variance matrix is 0.911 which shows less
variation from the mean value. Median value and mode values are 2.67 and 2
respectively. As the mean value is 2.66 which is average level of agreement for the
dimension, explains lower level of impact for eWOM.
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Statistics
SS1 SS2 SS3
Source
Similarity
Mean 2.37 2.97 2.65 2.6611
Median 2.00 3.00 3.00 2.6667
Mode 2 4 2 2.00
Std. Deviation 1.084 1.152 1.090 .95460
Variance 1.175 1.327 1.187 .911
Table no. 44: Overall central tendency of source similarity
4.3 Consumer choice of travel destination
Table no 45 shows the central tendency values for consumer choice of travel
destination from the sample. Mean value of the consumer choice is 3.42 with a 0.656
of variance. Mode values and median values of consumer choice are 3.57 and 3.5
respectively. Last indicator which measures the lower probability of visiting a
destination without checking any reviews recorded „Strongly disagreed‟ as the mostly
preferred answer which affected on the overall mean value.
Statistics
CC (1) CC (2) CC (3) CC (4) CC (5) CC (6) CC (7)
Consumer
Choice
Mean 3.27 3.69 3.78 3.62 3.73 3.25 2.58 3.4155
Median 4.00 4.00 4.00 4.00 4.00 3.00 2.00 3.5000
Mode 4 4 4 4 4 4 1 3.57
Std. Deviation 1.083 .896 1.049 1.109 1.002 1.147 1.333 .80982
Variance 1.172 .803 1.100 1.230 1.004 1.315 1.776 .656
Table 45: Central tendency of consumer choice in travel destination
4.5 Impact of eWOM towards the consumer choice of a travel
destination
To analyse the impact of eWOM towards the consumer choice of a travel destination
researcher has used scatter plot and correlation analysis.
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Diagram 22: Scatter plot – SI and CC
Searcher‟ intent on consumer choice
Scatter plot in the diagram 22
explains the searchers‟ intent has
positive relationship with
consumer choice of a travel
destination. The table no 46
shows the correlation value
between searchers‟ intent and
consumer choice which is 0.623.
Correlation matrix shows the
relationship between searchers‟
intent and consumer choice is
strong positive.
Correlations
Search
Intent
Consumer
Choice
Search Intent
Pearson Correlation 1 .623**
Sig. (2-tailed) .000
N 120 120
Consumer Choice
Pearson Correlation .623**
1
Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
Table no 46: Correlation analysis – SI and CC
Hypothesis testing
H0: There is no relationship between the searchers‟ intent and consumer choice of a
travel destination
H1: There is a positive relationship between the searchers‟ intent and consumer
choice of a travel destination
Sig. value = 0.000 | 0.000 < 0.05
Null hypothesis is rejected and it is concluded that there is a positive relationship
between searchers‟ intent and consumer choice.
Student ID: 1524496 61
Diagram no 23: Scatter plot - TW and CC
Trustworthiness of message on consumer choice
The diagram 23 represents the
scatter plot of trustworthiness of
message and consumer choice. It
can be described as a positive
relationship between trust and
consumer choice. The table 47
shows the calculated correlation
value for these two variables.
Correlation value is 0.544 it can be
interpreted as a strong positive
relationship.
Correlations
Consumer
Choice
Trustworthiness
Consumer Choice
Pearson Correlation 1 .544**
Sig. (2-tailed) .000
N 120 120
Trustworthiness
Pearson Correlation .544**
1
Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
Table 47: Correlation analysis – TW and CC
Hypothesis testing
H0: There is no relationship between trustworthiness of messages and consumer
choice of a travel destination
H1: There is a positive relationship between trustworthiness of messages and
consumer choice of a travel destination
Sig. value = 0.000 | 0.000 < 0.05
Null hypothesis is rejected, it is concluded that there is a positive relationship
between trustworthiness of messages and consumer choice of a travel destination.
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Diagram 24: Scatter plot – SE and CC
Senders‟ expertise on consumer choice
The diagram 24 presents the scatter
plot of senders‟ expertise with
consumer choice. This can be seen
as a dispersed to positive side but
shows a variance in few data.
Correlation analysis according to the
table no 48 correlation value is
computed as 0.439 which shows a
weak positive relationship between
senders‟ expertise and consumer
choice.
Correlations
Consumer
Choice
Sender
Expertise
Consumer Choice
Pearson Correlation 1 .439**
Sig. (2-tailed) .000
N 120 120
Sender Expertise
Pearson Correlation .439**
1
Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
Table 48: Correlation analysis – SE and CC
Hypothesis testing
H0: There is no relationship between senders‟ expertise and consumer choice of a
travel destination
H1: There is a positive relationship between senders‟ expertise and consumer choice
of a travel destination
Sig. value = 0.000 | 0.000 < 0.05
Null hypothesis is rejected, it is concluded that there is a positive relationship
between senders‟ expertise and consumer choice of a travel destination.
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Diagram 25: Scatter plot – SS and CC
Source similarity on consumer choice
Scatter plot in the diagram 25 shows
the relationship between source
similarity and consumer choice. Data
is scattered in between all responses
and the correlation matrix (in the
table no 49) shows the value as
0.329 which weak relationship.
Correlations
Consumer
Choice
Source
Similarity
Consumer Choice
Pearson Correlation 1 .329**
Sig. (2-tailed) .000
N 120 120
Source Similarity
Pearson Correlation .329**
1
Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
Table 49: Correlation analysis – SS and CCs
Hypothesis 4
H0: There is no relationship between source similarity and consumer choice of a
travel destination
H1: There is a positive relationship between source similarity and consumer choice
of a travel destination
Sig. value = 0.000 | 0.000 < 0.05
Null hypothesis is rejected, it is concluded that there is a positive relationship
between source similarity and consumer choice of a travel destination.
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Diagram 26: Scatter plot – Overall eWOM and CC
Overall eWOM impact on consumer choice
The scatter plot in the diagram 26
represents the casual relationship
between overall eWOM impacts
towards the consumer choice of a
travel destination. Scatter plot
shows a positive relationship and
the correlation value computed in
the table 50 shows as 0.663.
According to the correlation analysis
overall eWOM impact has a strong
positive relationship with consumer
choice in a travel destination.
Correlations
Consumer
Choice
Overall
eWOM
Consumer Choice
Pearson Correlation 1 .663**
Sig. (2-tailed) .000
N 120 120
Overall eWOM
Pearson Correlation .663**
1
Sig. (2-tailed) .000
N 120 120
**. Correlation is significant at the 0.01 level (2-tailed).
Table 50: Correlation analysis – Overall eWOM and CC
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Chapter 5: Conclusion, Implication and Recommendations
The ultimate objective of the research study is to identify the impact of the Electronic
Word of Mouth (eWOM) in consumer choice of travel destination and provide
recommendations to the marketers. Based on the research study data analysis,
conclusions are drawn by the researcher and recommendations will be suggested.
Finally further research ideas will be recommended with insights.
5.1 Conclusion and implication
eWOM has now become one of the most credible and highly accessible mediums in
consumer buying process. It has upgraded the tourism industry by enhancing the
quality of information sources, timeliness of decisions and satisfaction of travel
experience. These dimensions are searchers‟ intention, trustworthiness of the
shared message, senders‟ expertise and source similarity. Researcher has
conducted a literature survey and identified four main dimensions in examining the
impact of eWOM towards the consumer choice. Researcher has conducted the
Pearson correlation analysis to identify the casual relationship between dimensions
of eWOM and consumer choice of a travel destination. According to the analysis
both searchers‟ intention and trustworthiness of message have strong positive
relationship with the consumer choice of a travel destination. Senders‟ expertise and
source similarity have positive correlation with consumer choice but the strength of
the relationship is weak. As mentioned, searchers‟ intentions and trustworthiness
play a substantial role in building up the overall impact of eWOM. However overall
eWOM has a strong positive relationship with the consumer choice.
Researcher has identified the mediums of eWOM through the primary research
study conducted by the researcher. These sources are travel websites such as
Lonely Planet, Trip Advisor, Agoda.com and Booking.com. From these review
websites Trip Advisor was the preferred website from everyone. Majority of
participants have mentioned social media platforms and travel blogs as their main
source for information about destinations. In terms of social media platforms
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Facebook and Instagram play a key role in sharing destinations related information.
Few of participants mentioned Twitter and Flicker as well and YouTube is also
mentioned as a source for destination information.
With the emerging trend of eWOM in the travel industry, marketers‟ job has been
challenged by travellers. These challenges can be identified as follows;
i. Need to monitor online presence of their brands
Consumers are posting their experiences everywhere such as their personal social
media accounts, company‟s social media pages, review websites and written
articles. Monitoring is a challenge for marketers as they have to engage in
monitoring continuously and examine the impact of them.
ii. Travellers know everything
Today the travellers know about everything, they know about destinations, food,
weather conditions, recent events, potential itineraries and attractions nearby,
therefore attracting a traveller is difficult with the expertise level. Marketers need to
come up with different strategies in approaching these expertise customers.
iii. Consumer buying behaviour has become complicated now
Consumers nowadays follow different approaches, their reactions and behaviour
cannot be predicted. Their buying behaviour has been affected by eWOM and it has
become complicated to envisage. Marketers have to examine consumers very
closely in catering to them.
iv. People trust user generated content than the marketer created content
People trust and prefer to read user generated content than marketers‟ content
which is published by travel organisations. Marketers should be very cautious and
creative in creating and implementing the content strategy for their travel brand.
v. Negative eWOM can damage the sales and as well as the overall image of
the brands
Negative eWOM can spread faster than positive eWOM and can damage sales and
Student ID: 1524496 67
overall image of the brand. Customers now have the opportunity to complain against
brands on public level by tagging the company pages, they can influence the overall
ratings of the company. Therefore marketers need to the challenge of handling
online enquires, negative feedback and complaints in very serious manner.
5.3 Recommendations
Based on the research study conducted researcher, the following strategies are
recommended for travel digital marketers;
i. Give priority for online brand reputation
Today searchers‟ intention in searching information on internet is very high and
information is freely available and accessible via internet. Travel marketer should
always monitor their brand presence and online reputation. Marketers‟ responsibility
has expanded from the point of online posting to monitoring and reacting
professionally on the internet. Marketers should use online tools such as Social
Bakers, Hootsuite, Hubspot, Tweet Deck and Klout to monitor and manage their
online reputation.
ii. Enhance internal operational processes
Mostly consumers are complaining and posting negatively on the internal operational
processes. For an example, if a traveller sees an error in the website content on a
destination they will share the error on social media. Therefore the internal
processes should be more upgraded and well-structured to reduce the chances of
negative eWOM. At the same time if a travel organisation updates an interesting
content via their websites, consumers will share this content on social media without
any benefit.
iii. Proper way to handle online complaints
Travel organisations should implement a proper way of managing online complaint
process. Organisations should be more professional and cautious when replying to
the raised complaints and should always learn from these negative comments.
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iv. Investing more on eWOM than traditional content
It is identified that the user generated content is more trusted than the company
generated content. Therefore travel organisations should identify the mediums of
eWOM and utilize the marketing communication strategy with the use of these
identified mediums. Travel blogging, Instagram, Snapchat, Sponsoring popular travel
bloggers, create viral stories and video storytelling would be beneficial for travel
companies than pay per click advertising.
v. Should be proactive
Consumers know everything! They get to know about natural disasters, economic
downturns, political status, climate changes and other customers‟ previous
experiences. If marketers fail to answer a question, spread false content or are not
aware of a situation, it can bring a big harm to the brand especially in tourism
industry. Therefore marketers should be proactive and always look for new
opportunities to utilize their effort.
Positive eWOM can create large number of sales, good online reputation and brand
promoters from their own customers.
5.4 Further research insights
Researcher has identified following areas as further research areas based on the
research study conducted;
i. According to the open ended question answers for the question on mediums
of information gathering on destination, lot of responded mentioned the popular
website „Trip Advisor‟. It will be an interesting research topic to analyse the influence
of Trip Advisor reviews on travel decision making.
ii. This research conducted to identify and examine the relationship and impact
of eWOM towards consumer choice with regard to tourism industry. It will be a
comprehensive and vital topic to conduct a research study on the impact of eWOM
on demographical basis. This will be a descriptive research approach to examine the
Student ID: 1524496 69
impact of eWOM differences based on demographic factors such as gender, age
and social role.
iii. Research can be conducted to create a model for eWOM influence in the
buying decision process as this model could enhance digital marketing efforts in a
tremendous manner. As eWOM influence each stage of the consumer buying
process, model can suggest different strategies for each stage.
iv. Research can be conducted to measure the impact of social networking and
blogging (most trending eWOM sources) towards travel decision making. The
marketers can utilize their social media and inbound marketing strategies based on
the research insights.
v. Examine the mobile application contribution towards travel purchase intention
can become an interesting and trending topic to study as today smart phone has
acquired the share than the desktop in some countries. These insights can be used
to implement mobile applications and new mobile marketing strategies.
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination
The impact of electronic word of mouth (e wom) towards the consumer choice of a destination

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The impact of electronic word of mouth (e wom) towards the consumer choice of a destination

  • 1. The Impact of Electronic Word of Mouth (eWOM) towards the Consumer Choice of a Destination (With regard to Tourism Industry in a Global Context) Author: Merengnage Sulakkhana Nirmanee Author Student ID No: 1524496 The Academic Award: Master of Business Administration Supervisor: Mr Chamara De Zoysa The Year of Submission: 2016
  • 2. Student ID: 1524496 1 Declaration I hereby declare that this dissertation in its entirety, unless specifically mentioned and given credit to, is my work. I further declare that her dissertation in whole or part has not been presented for any award or published, including at this university. Student Name : M. Sulakkhana Nirmanee Student Number : 1524496 Date : 1st September 2016
  • 3. Student ID: 1524496 2 Abstract Growth and popularity of internet and social media has resulted in a rapid shift from traditional WOM to Electronic Word of Mouth (eWOM). Internet has now created a free space and opportunity to share consumers‟ ideas, experiences and knowledge around the world within few seconds. At the same time, digital space has become one of the most credible global medium for marketing. Tourism industry has been shaped up by with the growth on internet, online communities, social media and eWOM. Today travellers are powerful as tourism brands and they have become a medium of information exchange. Researcher believes that the eWOM plays a key role in tourism industry buying behaviours of travellers therefore it is significant for travel digital marketers to manage online reputation of their brands. Researcher has identified the knowledge gap between the impact of eWOM towards tourism buying behaviour as an interesting and contemporary topic to conduct a research study. With this understanding, researcher has selected the research topic as „The impact of eWOM towards consumer choice of a destination with regard to tourism industry. Both primary and secondary surveys have been conducted by the researcher in terms of building the research study. It is concluded that the eWOM has an impact on consumer choice of a travel destination based on the correlation analysis. Recommendations to improve the positive results of eWOM and skills needed for travel digital marketers have been identified based on the conclusion. Further research areas have been suggested at the end of the study. Keywords: Word of Mouth, Electronic Word of Mouth, Customer testimonials, Traveller reviews, Social Media, Web 2.0, Travel Destination, Consumer Choice, Digital Marketers
  • 4. Student ID: 1524496 3 Table of Contents Chapter 1 - Introduction.............................................................................................. 9 1.1 Introduction to the industry............................................................................ 9 1.2 Background of the study ............................................................................. 10 1.3 Significance of the research........................................................................ 11 1.4 Problem statement...................................................................................... 13 1.5 Research objectives.................................................................................... 13 1.6 Research questions .................................................................................... 13 1.7 Research hypothesis .................................................................................. 14 1.8 Chapter summarisation............................................................................... 14 Chapter 2: Literature Review.................................................................................... 16 2.1 Word of Mouth (WOM)................................................................................ 16 2.2 Electronic Word of Mouth (eWOM) ............................................................. 18 2.2.1 Motives of eWOM ....................................................................................... 18 2.2.2 Potential results of eWOM .......................................................................... 19 2.2.3 Benefits of eWOM....................................................................................... 19 2.2.4 Mediums of eWOM of travel ....................................................................... 21 2.2.5 Dimensions of eWOM................................................................................. 22 2.3 Consumer choice of travel destination........................................................ 24 2.4 Relationship between Electronic Word of Mouth and Consumer choice in a travel destination ...................................................................................................... 25 2.5 Theoretical framework ................................................................................ 26 Chapter 3: Research Methodology........................................................................... 27 3.1 Research problem....................................................................................... 27 3.2 Research approach..................................................................................... 27 3.3 Research design......................................................................................... 27 3.4 Operationalization....................................................................................... 28 3.5 Method of data collection............................................................................ 30 3.6 Method of data presentation ....................................................................... 30 3.7 Method of data analysis.............................................................................. 30 3.8 Sampling..................................................................................................... 31 3.9 Questionnaire design.................................................................................. 31
  • 5. Student ID: 1524496 4 3.10 Reliability and Validity measures ................................................................ 32 3.10.1 Stability ....................................................................................................... 32 3.10.2 Internal Consistency ................................................................................... 32 3.10.3 Validity........................................................................................................... 33 3.10.4 Content validity.............................................................................................. 34 3.10.5 Construct validity........................................................................................... 34 Chapter 4: Data Analysis and Presentation.............................................................. 40 4.1 Sample profile............................................................................................. 40 4.1.1 Gender........................................................................................................ 40 4.1.2 Age ............................................................................................................. 41 4.1.3 Education level ........................................................................................... 41 4.1.4 Occupation.................................................................................................. 42 4.1.5 Use of internet ............................................................................................ 43 4.2 Dimensions of eWOM................................................................................. 43 4.2.1 Searchers‟ intent......................................................................................... 44 4.2.2 Trustworthiness of message ....................................................................... 48 4.2.3 Senders‟ expertise ...................................................................................... 52 4.2.4 Source similarity ......................................................................................... 56 4.3 Consumer choice of travel destination........................................................ 59 4.5 Impact of eWOM towards the consumer choice of a travel destination ...... 59 Chapter 5: Conclusion, Implication and Recommendations..................................... 65 5.1 Conclusion and implication ......................................................................... 65 5.3 Recommendations...................................................................................... 67 5.4 Further research insights ............................................................................ 68 References............................................................................................................... 70
  • 6. Student ID: 1524496 5 List of Abbreviations WOM – Word of Mouth eWOM – Electronic Word of Mouth SI – Searchers‟ Intent TW – Trustworthiness of Message SE – Senders‟ Expertise SS – Source Similarity CC – Consumer Choice
  • 7. Student ID: 1524496 6 List of figures and diagrams Figure 1: Theoretical Framework Diagram 1: Gender composition Diagram 2: Age composition Diagram 3: Education level Diagram 4: Occupation level composition Diagram 5: Internet use Diagram 6: Interest to read testimonials on internet (SI1) Diagram 7: Gather information from customer testimonials (SI2) Diagram 8: Reviews before making the decision (SI3) Diagram 9: Visit more than 5 websites (SI) Diagram 10: Biasness of the customer testimonials (TW1) Diagram 11: Trust customer content than website (TW2) Diagram 12: Trust reviews from friends (TW3) Diagram 13: Trust reviews with actual names (TW4) Diagram 14: Trust reviews with photos (TW5) Diagram 15: Trust reviews from frequent submitters (SE1) Diagram 16: Trust reviews with likes (SE2) Diagram 17: Negative impact of Spellings and grammar (SE3) Diagram 18: Trust experienced travellers (SE4) Diagram 19: Reviews from same gender (SS1) Diagram 20: Reviews from same age group (SS2) Diagram 21: Reviews from same residence area (SS3) Diagram 22: Scatter plot – SI and CC Diagram 23: Scatter plot - TW and CC Diagram 24: Scatter plot – SE and CC Diagram 25: Scatter plot – SS and CC Diagram 26: Scatter plot – Overall eWOM and CC
  • 8. Student ID: 1524496 7 List of tables Table 1: Operationalization of key concepts Table 2: Cronbach‟s Alpha for Searchers‟ intent Table 3: Cronbach‟s Alpha for Trustworthiness of message Table 4: Cronbach‟s Alpha for Senders‟ expertise Table 5: Cronbach‟s Alpha for Source similarity Table 6: Summary of Cronbach‟s Alpha: Reliability Table 7: KMO and Bartlett‟s test – Searchers‟ intent Table 8: Total variance explained – Searchers‟ intent Table 9: Component Matrix – Searchers‟ intent Table 10: KMO and Bartlett‟s test – Trustworthiness of message Table 11: Total variance explained – Trustworthiness of message Table 12: Component Matrix – Trustworthiness of message Table 13: KMO and Bartlett‟s test: Senders‟ expertise Table 14: Total variance explained: Senders‟ expertise Table 15: Component matrix: Senders‟ expertise Table 16: KMO and Bartlett‟s test: Source similarity Table 17: Total variance explained: Source similarity Table 18: Component matrix: Source similarity Table 19: Summary of validity values Table 20: Gender composition Table 21: Age composition Table 22: Education level composition Table 23: Occupation level composition Table 24: Internet use composition Table 25: Interest to read testimonials on internet (SI1) Table 26: Gather information from customer testimonials (SI2) Table 27: Reviews before making the decision (SI3) Table 28: Visit more than 5 websites (S4) Table 28: Overall central tendency of searchers‟ intent
  • 9. Student ID: 1524496 8 Table 29: Biasness of the customer testimonials (TW1) Table 30: Trust customer content than website (TW2) Table 31: Trust reviews from friends (TW3) Table 32: Trust reviews with actual names (TW4) Table 33: Trust reviews with photos (TW5) Table 34: Overall central tendency of trustworthiness of message Table 35: Trust reviews from frequent submitters (SE1) Table 36: Trust reviews with likes (SE2) Table 37: Negative impact of Spellings and grammar (SE3) Table 38: Trust experienced travellers (SE4) Table 39: Overall central tendency of senders‟ expertise Table 40: Reviews from same gender (SS1) Table 41: Reviews from same age group (SS2) Table 42: Reviews from same residence area (SS3) Table 43: Overall central tendency of source similarity Table 44: Central tendency of consumer choice in travel destination Table 45: Correlation analysis – SI and CC Table 46: Correlation analysis – TW and CC Table 47: Correlation analysis – SE and CC Table 48: Correlation analysis – SS and CC Table 49: Correlation analysis – Overall eWOM and CC
  • 10. Student ID: 1524496 9 Chapter 1 - Introduction The main objective of this chapter is to provide an introduction to the research study. Researcher has analysed the tourism industry, economic contribution of it and growth of the industry. Researcher has identified the shift of word of mouth from traditional mediums to online mediums and the impact of it towards tourism industry. As the tourism industry is a wide industry, researcher has selected to discuss on the consumers’ choice of a travel destination as the factor to measure based on the impact of electronic word of mouth. This chapter contains the background of the study, significance of the study and research scope. Researcher has developed research objectives, research questions and research hypothesis in this chapter and finally summarised the chapters of the research. 1.1 Introduction to the industry Tourism is one of the rapidest growing industries in the world and the growth rate is anticipated to endure at a pace of 4% annually in next five years at global level. In the year 2015, tourism industry contributed 7,200 billion USD to the global gross domestic production (GDP) which represents 9.8% of global GDP and it is expected to achieve 3.3% of growth at the end of the 2016. In most of developing countries, tourism plays the role of the leading contributor in the economy. Today travel and tourism industry creates to over 284 million of direct employment opportunities and it is affecting positively towards infrastructure development (Travel and Tourism Economic Impact, 2016). Sri Lanka is known as one of the most popular destinations in South Asia with several attractions of wildlife, tropical nature and beaches. Tourism in Sri Lanka is also growing in a rapid manner after the end of the three decade civil war, infrastructure development and growth of informational channels. Sri Lanka recorded its highest number of tourist arrivals in the year 2015 with 1,798,980 tourists which is 17.8% of increase compared to the year 2014. It can be identified as the third sector in earning foreign exchange, USD 2980 million per annum which represents 12.4%
  • 11. Student ID: 1524496 10 from total foreign exchange earnings. Asia is the main source for Sri Lankan inbound tourism which owns 45.7% from the total share followed by Western Europe with a fraction of 30.7% (Annual Statistics Report - SLDA, 2015). Tourism industry has been shaped with the growth of the internet. Customers can now gather information about a destination from internet before they travel, book online without visiting the travel store, airlines has their online reservation methods, even small travel and adventure travel companies have their own websites, online hotel booking websites such as Booking.com and agoda.com are popular among the travellers, review websites such as Trip Advisor, Yamu and Lonely Planet are influential, frequent travellers have their own travel blogs and travel stories are widespread in social media platforms such as Tourist Link, Snapchat and Instagram. Therefore the relationship between internet and travel industry is significant to study. 1.2 Background of the study Word of mouth is defined as the way of influencing someone‟s buying behaviour by sharing an informal opinion on a product or service based on the personal experience of consuming it. As stated it is a flow of information from sender to receiver, word of mouth can be either positive or negative. According to previous researches and journal papers, word of mouth is considered as one of the most credible and effective methods in communication. With the growth of internet, online platforms and social media, word of mouth has shifted from traditional level to global online level. Electronic Word of Mouth (eWOM) is the way of exchanging information via online with a wider community. With the availability and popularity of online channels, social media platforms, blogs, review websites, virtual global communities and online forums Electronic Word of Mouth (eWOM) has become more momentous and challenging. When comparing with the traditional word of mouth, Electronic Word of Mouth (eWOM) has enormous benefits towards both customers and marketers, such as, being a fast flow of information between sender and receiver, high breadth of information, ability to spread to a large
  • 12. Student ID: 1524496 11 number of people, ability to communicate in global level, consumer protection from anonymous status of information sender and high level of time saving. As the tourism and adventure industry grows with the support of the technological advancements and growth and popularity of internet, online marketing communication tools and social media platforms play a key role in tourism industry. Today travellers are seeking information about destinations, hotels, restaurants, food and festivals on internet, majority of people tend to find and book travel packages online, posting their check-ins and sharing their experience online. As the reviews, travellers‟ blogs and social media posts on travelling are based on personal experiences of travellers, readers get inspired to travel, find new destinations, food, travel packages and tips in travelling. Therefore internet applications can be identified as the common space for people share their experiences on product and services. According to the research conducted by Gretzel and Yoo in the year 2008, more than 80%of travellers considered online reviews and testimonials of travellers when they make purchasing decisions in terms of deciding where to go, what to do and how to go. Approximately over USD 10 billion travel purchases are influenced by online reviews according to Compete (2007) and it is probably one of key influences in travel purchasing decision process. As the tourism industry is wide scope of research study, researcher has selected to discuss about the consumers‟ choice of a travel destination and the impact of electronic Word of Mouth in selecting a travel destination. With this understanding, the researcher develops the research on the impact of Electronic Word of Mouth (eWOM) towards the consumer choice of a travel destination with regard to tourism industry. 1.3 Significance of the research As mentioned before, word of mouth has moved from traditional level to global electronic level. Consumers‟ idea on a particular purchase decision or an experience based on the consumption can be shared among people in a free
  • 13. Student ID: 1524496 12 manner within a few seconds. Reach and volume of the information shared, audience and the time of the sharing and method of sharing is significant compared to traditional mediums. With the growth of internet, information is freely available for customers and customers themselves generate content towards products, services and brands. Electronic Word of Mouth (eWOM) has become of the main player in tourism industry as people nowadays search information on internet, share their travel experiences and photos on social media, create and maintain their own blogs, write reviews on websites and share their travel stories in online communities. Some researchers argued that the credibility of user generated content such as reviews, social media posts and blogs is higher than the content shared by travel companies (Litvin, Blose and Laird, 2004). Therefore Electronic Word of Mouth (eWOM) is vital in making travel purchasing decisions. Researcher found this topic as interesting to investigate from the perspective of a marketer. Marketers are facing challenges in terms of implementing their marketing strategy when customers are getting the opportunity to share the experiences after travelling to a place or eating a new food. Different customers define and share different opinions on travel experiences and sometimes negative feedback spread around the world faster than advertising messages. Therefore marketers should be good in managing their online reputation created via Electronic Word of Mouth. So understanding the impact of Electronic Word of Mouth towards consumer choice in travel destination is vital for marketers. Benefits of studying this research topic can be summarised as follows; i. Can identify the mediums people collect and share information related to tourism industry, and marketers can pay more attention to these mediums in terms of creating their marketing communication strategy ii. Based on the secondary data analysis which is known as the literature survey, dimensions of Electronic Word of mouth can be identified. These dimensions will provide insights to marketers in terms of creating marketing communication touch points iii. Impact of Electronic Word of Mouth in selecting a destination will be measured based on a survey, conclusions can make the foundation in building the
  • 14. Student ID: 1524496 13 inbound marketing and content strategy iv. Based on the conclusion of the study, research study can develop recommendations to marketers in creating their overall marketing strategy 1.4 Problem statement The impact of Electronic Word of Mouth (eWOM) in consumer choice of a destination with reference to the tourism industry 1.5 Research objectives The main objective of the research is to identify the impact of the Electronic Word of Mouth (eWOM) in consumer choice of destination with reference to the tourism industry. Following can be identified as the specific objectives; 1. To identify the ways in which eWOM distribute information with regard to the tourism industry 2. To examine the impact of eWOM towards the consumer choice of travel destination with regard to the tourism industry 3. To identify the challenges a brand in the tourism industry face from eWOM 4. Recommendations to manage positive eWOM in tourism industry 1.6 Research questions 1. What are the ways that eWOM distribute information in the tourism industry? 2. What is the impact of the eWOM towards the consumer choice of a travel destination? 3. What are the major challenges for the tourism industry which arise from eWOM? 4. What are the recommendations to manage positive eWOM in the tourism industry?
  • 15. Student ID: 1524496 14 1.7 Research hypothesis Hypothesis 1 H0: There is no relationship between the searchers‟ intent and consumer choice of a travel destination H1: There is a positive relationship between the searchers‟ intent and consumer choice of a travel destination Hypothesis 2 H0: There is no relationship between trustworthiness of messages and consumer choice of a travel destination H1: There is a positive relationship between trustworthiness of messages and consumer choice of a travel destination Hypothesis 3 H0: There is no relationship between senders‟ expertise and consumer choice of a travel destination H1: There is a positive relationship between senders‟ expertise and consumer choice of a travel destination Hypothesis 4 H0: There is no relationship between source similarity and consumer choice of a travel destination H1: There is a positive relationship between source similarity and consumer choice of a travel destination 1.8 Chapter summarisation Chapter one provides the introduction to the study. It provides an introduction to the tourism industry, introduction to the study topic. It identifies the importance of the conducting the research and how this study can add value to enhance the consumer choice of destination in tourism industry. Problem statement, research aims, research questions and research hypothesis are put forward in this chapter.
  • 16. Student ID: 1524496 15 The researcher develops the literature review in the chapter two. Different views and statements developed by different writers are gathered in developing the literature review. Research methodology is described in the third chapter. The researcher explains research design, research approach and develops the conceptual framework in this chapter. Sampling techniques, data collection methods and data analysis methods are stated in the chapter as well. Chapter four covers the data analysis and data presentation. Researcher uses diagrams, charts and tables to present data and SPSS 20 to analyse data. Chapter five carries out the conclusion and discussion based on the research findings. Researcher draws the research conclusion and develops answers to research questions. Recommendations are built up based on the conclusion and researcher develops discussions to initiate further research studies.
  • 17. Student ID: 1524496 16 Chapter 2: Literature Review The main objective of the Literature Review chapter is to develop the foundation to the research study and build the theoretical framework accordingly. This chapter explains the concept of the Electronic Word of Mouth (eWOM), consumer choice in travel destination and the impact of eWOM towards the travel destination selection. Related literature is examined to analyse the concepts, develop dimensions to measure concepts, create theoretical framework and formulate the research questionnaire. 2.1 Word of Mouth (WOM) ‘One customer well taken care of could be more valuable than $10,000 worth of advertising’ is a famous saying by Jim Rohan who was an American entrepreneur on the significance of the Word of Mouth. Word of mouth can be identified as one of the most prominent sources of information and Katz and Lazarfeld (1955) explained word of mouth has a bigger impact than advertising in buying decision process. Word of Mouth (WOM) is defined as the communication process between consumers about a product, service, brand or an organisation which is autonomous from commercial stimulus (Silverman, 2001). Cheung (2008) explained the word of mouth communication does not misrepresent the truth of the consumption of a product or service as it occurs among people informally and without any commercial influence. Westbrook (1987) explained the WOM as the communication among consumers about the possession, usage and features of a product or service based on the consumption. Pollach (2006) introduced WOM as a „person-to-person communication‟ which occurs between two or more consumers. Word of Mouth communication often happens among family, relatives, friends and colleagues (Sandes and Urdan, 2013). Since the receiver is aware that the sender has no intention to get financial benefits out of the comment on the product or service, the credibility level is mostly high (Casielles, 2013). WOM allows consumers
  • 18. Student ID: 1524496 17 to share their opinions and experiences on product or service in a free manner and the interaction of WOM communication is high (Hawkins, 2004). Steffes and Burgee (2009) identified that the WOM influence towards the buyer buying decision process is an extensive area in conducting academic researches as the impact is generous in consumer decision making process. Furthermore, WOM can be either positive or negative but it shapes the consumer buying decision process, image, perception and attitude towards a product. Therefore WOM is considered as an influential marketing communications medium which is out of control from the organisation (Jansen, 2009). Ditcher (1966) identified four motives behind the WOM and developed the Ditcher typology. Later on Engel, Blackwell and Miniard (1993) improved the typology by adding a new factor. These motives are involvement, self enhancement, concern for others, message intrigue and dissonance reduction. Involvement describes the level of interest towards a product or service and when the interest level is high consumer spreads their opinions on the consumption. Self enhancement describes the desire of consumer to gain an attention or higher position via sharing their consumption experience on a specific product or service. Another motive behind WOM is the concern people have for others and aim of the WOM is helping the other consumers to make their purchasing decisions better. Message intrigue motive explains a psychological behaviour of consumers as when they feel proud of their decision they talk about it. Finally Engel, Blackwell and Miniard identified reducing dissonance as a motive behind WOM. In this situation consumers want to exculpate doubts with regard to a product without receiving any financial benefit, Butter (1998) identified this customer group as the most valuable promoters for a brand. With the growth and popularity of internet, it has become the main mode of daily basis communication in human life. As a result of that word of Mouth shifted from physical level to global electronic level which emerged as Electronic Word of Mouth (eWOM).
  • 19. Student ID: 1524496 18 2.2 Electronic Word of Mouth (eWOM) Today the internet has become main medium of communication in day to day life. According to Internet Live Stats research (2015) 3.4 billion global internet users which represent 436.1% from the total world population. Google has become the most popular search engine in the world where 40,000 queries searched per second and 1.2 trillion searches per day. According to Social Media Today research (2016) YouTube has become the next largest search engine 3.25 billion of hours of videos are watched per month. Social networking has become another powerful medium around the world as 1 million new active users connect to social media accounts from their mobiles daily (Hubspot, 2015). Social media platforms such as Facebook, Twitter, Instagram and Snapchat have members respectively as follows 1.71 billion, 320 million, 400 million and 100 million. Average number of friends on Facebook is around 338 and Facebook and Whatsapp together handle 60 billion messages around the world (Media Watch, 2016). 61% mobile search results ended up with an online purchase and 78% of people tweet a complaint against a brand every hour. As mentioned above, internet 2.0 has created an opportunity to share information, opinions and experiences (Mayfield, 2008). This information can be related to products, services, organisations and brands and since it is created by consumers it is known as „user generated content‟. Electronic Word of Mouth (eWOM) is defined as an effort by former, potential, existing or actual consumer to share feature, knowledge or opinion of a product or service based on their personal experience (Almana and Mizra, 2013). eWOM is virtual and it spreads around everyone on internet but traditional WOM is physical and limited between the sender and receiver (Buttle, 1998). eWOM contains higher breadth of information, wider access to information, is faster and has no geographical boundaries compared to traditional WOM. Unlikely to traditional WOM, eWOM can occur among people and groups who have no relationship, similarity or prior communication. 2.2.1 Motives of eWOM According to the complaint theory developed by Lee and Cude (2012), consumers
  • 20. Student ID: 1524496 19 are willing to share their satisfaction levels via internet especially when they are dissatisfied with the consumption. Research says when a user is dissatisfied they are most likely to choose internet as the medium to share their bad experiences or to make a public complaint against a brand. Henning and Thurau (2004) identified four motives behind the eWOM. They are intention to gain their own social good on internet, to maintain their social image as social wellbeing seekers, actually with the intention to help others to survive in the business world and finally to enhance their self-esteem. 2.2.2 Potential results of eWOM There are three potential results of eWOM; positive, negative and neutral (Anderson, 1998). Foreman, Ghose and Wiesenfeld (2006) stated that the eWOM can directly influence on sales of a product or service as it plays a key role in buyers‟ buying decision process. According to a research conducted by Chevalier and Mayzlin (2006) it is figured as the positive eWOM supports for quality online purchases where the negative eWOM negatively impacting on sales. And also they mentioned negative eWOM has stronger influence than positive eWOM. In the end of the year 2016, Liu conducted a similar research and came up with a different conclusion as negative eWOM has no influence on buyer decision processes or sales of particular product but it created an indirect promotion on the product. However several authors have concluded that the eWOM has direct influence on the sales as it plays a key role in consumers‟ mind-set. But it is said if a consumer has already purchased and consumed a product although that person received negative extreme eWOM on the product, reaction in buying that product will not change (Herr, Kardes and Kim (1991). 2.2.3 Benefits of eWOM Today information related to any product, service, organisation or brand is available and highly accessible to anyone via internet regardless of the geographical location or time (Zarrad and Debai, 2015). Users can search what they want to know at any time using search enquiries on search engines and the search engine will index more than ten thousand results within one second without any cost (Sandes and
  • 21. Student ID: 1524496 20 Urdan, 2013). Google (2014) developed the concept called zero moment of truth based on this opportunity. As customers are now buying a product or service with a prior knowledge and information, confusions and doubts are limited at the moment of purchase. Consumers can ask any question on search engines to gain knowledge about a product and overall ratings on products and services are available on internet (Allsop, Bassett and Hoskins, 2007). People can gather information, compare with alternatives available and make purchasing decisions before committing financially towards a brand which is introduced as a new phenomenon named „theory of planned behaviour‟ (Severi, Ling and Nasermoadeli, 2014). Consumers have the opportunity to share their product knowledge, satisfaction related information and experiences on consumption on internet without anyone‟s permission (Takhire and Joorshari, 2015). Web 2.0 has created a digital space for public conversations around the world. If a consumer is satisfied with a product he or she can recommend it to another consumer (Buttle, 1998). eWOM has become a complain raising medium in consumer world. Consumers can make complains in public level or anonymous manner against the brand. With the support of eWOM, traditional buyer buying process has changed and enhanced and eWOM plays a key role in consumers‟ mindset (Keitzmann and Canhoto, 2013). Consumers have become brand promoters, brand consultants and brand ambassadors from their involvement in eWOM (Media Watch, 2016). Nowadays people can create and enhance their own social online image using eWOM and they can achieve self-esteem via talking about their life styles and experiences in consumer world (Sharma, Arroyo and Pandey, 2012). People have become bloggers today and share inspirational content around the world. People identify new friends, people with similar desires and interest and mutual ideas on internet. Online communities have become knowledge and experience sharing mediums (Abalassei and Sandu, 2016). eWOM has no commercial involvement but it has created a commercial opportunities in the consumer world (Almana and Mirza, 2013). There are organisations whose main operations are managing eWOM across different industries. For instances, Trip
  • 22. Student ID: 1524496 21 Advisor is a global website which manages reviews and content of tourism and hospitality industrial organisation they enhance the consumer buying decisions via eWOM and earning financial benefits from that (Trip Advisor, 2016). 2.2.4 Mediums of eWOM of travel There are several mediums available today where consumers can share consumption related information around the world. They can be summarised as follows; i. Customer testimonials on websites: Customers who consume travel products from a brand are asked to fill feedback form after their experience. These reviews are published on the websites with the permission of customers to promote their products and used to calculate overall travellers‟ ratings (Seweryn, 2013). ii. Online review websites: Some websites who share and post traveller information on the brands and destinations with the objective of helping other travellers. For example, Trip Advisor, Oyster, Zomato, Airline Quality, Trip Expert and Travel Post. Trip Advisor can be identified as the most popular review website for tours, hotels, destinations and activities. Oyster share information about hotels and accommodation and Zomato review restaurants. Airline Quality reviews and compares airline packages (Media Watch, 2016). iii. Travel blogs: Blogging has become a new trend in travellers‟ journey as they share their experiences, inspire others and earn money from their blogs. eMarketer (2010) records 30% increase in number of travel bloggers in the year 2010 compared to 2007. Bloggers use Facebook, Twitter and Instagram in promoting their blog and they write on their experiences, post photos, upload food recipes and tips in travelling (Hubspot, 2016). iv. Social media: Social media is a one of the fasted growing mediums in terms of number of platforms and number of members. Hubspot (2016) recorded that
  • 23. Student ID: 1524496 22 internet users in the world have an average of 5.54 social media platforms and 2.3 billion active social media users around the world. Social media is one of the informal but most influential sources in tourism industry. v. Mobile applications: Media watch records that more than 40% travel search enquiries come via smart phone devices (Internet Live Stats, 2016). Identifying the growing demand coming across mobiles, travel companies have introduced useful mobile applications. For instances Hipmunk, Sky Scanner, Lounge Buddy, Trip It, Pack point, Trip Advisor, Kayak and Time Out can be introduced. 2.2.5 Dimensions of eWOM Researcher has identified four dimensions based on the critical literature review conducted, in measuring the impact of eWOM with regard to tourism industry. Searchers‟ intent Searchers‟ intention is one of the identified dimensions in measuring the eWOM impact. This occurs on the searchers‟ perspective as it explains to what extent the searcher involve physically and psychologically in searching eWOM on the internet (Steffes and Burgee, 2009). It describes as the importance of searching eWOM messages on internet before making a buying decision as the eWOM recommendations are vital to make decisions (Cheung, Luo, Sia and Chen, 2009). Arndt (1967) argued if a consumer is seeking more eWOM on internet or digital spaces that person has higher probability to influence by eWOM than a normal consumer. Bansal and Voyer (2000) corroborated the conclusion from their own research and identified consumers are more likely to seek information when the information is highly accessible on internet. As researcher has identified searchers‟ intention as a dimension in measuring the impact of eWOM research hypothesis has developed as follows; Hypothesis 1 H0: There is no relationship between the searchers’ intent and consumer choice of a travel destination
  • 24. Student ID: 1524496 23 H1: There is a positive relationship between the searchers’ intent and consumer choice of a travel destination Trustworthiness of message Trustworthiness of message is identified under the source credibility in eWOM communication. This defines the degree of trust and credibility of the source and the message to accept eWOM as a source of information in making a consumer decision (Kelman and Hovland, 1953). Transparency of the message, writing style and method of presenting the message can be identified as indicators in measuring the trustworthiness of message (Fan and Miao, 2012). Unlike the traditional word of mouth, internet shares eWOM among people who have no relationships or prior communication but Senecal and Nantel (2004) argued that familiarity has no impact on the trustworthiness of the message. Researcher has developed following research hypothesis in terms of measuring the impact of eWOM. Hypothesis 2 H0: There is no relationship between trustworthiness of messages and consumer choice of a travel destination H1: There is a positive relationship between trustworthiness of messages and consumer choice of a travel destination Senders‟ expertise Expertise of the communicator or message sender can be vital in terms of measuring the impact of the eWOM towards consumer decision making process. Boush and Kahle (2001) argued that to inspire or influence one‟s decision, the information sender should be an expert person in the key area and also relevant knowledge, professionalism and experience should shape the personal message to become a source of decision making. Bloch and Richins (1986) stated that a consumer with a higher expertise can easily make a correct purchase decision based on their gathered knowledge and previous experience. Gilly, Graham, Wolfinbarger and Yale (1998) introduced expertise consumers as consultants and Solomon (1997) identified expertise consumer as one of the critical information sources in influencing other consumer decisions. Researcher has developed following hypothesis based on the literature gathered under the senders‟ expertise.
  • 25. Student ID: 1524496 24 Hypothesis 3 H0: There is no relationship between senders’ expertise and consumer choice of a travel destination H1: There is a positive relationship between senders’ expertise and consumer choice of a travel destination Source similarity Steffes and Burgee (2009) introduced the theory of homophily which explained people are most likely to believe ideas and thoughts from a similar source. They explained that consumers‟ buying decisions are influenced by other consumers from same gender, education, status and social class. Wangenheim and Bayon (2013) explained individuals are likely to compare their own self with the information source in terms of demographic elements in making their purchase decisions. Lazarsfeld and Merton (1954) stated consumers can only develop homogeneity among relations and friends and argued these groups as the only influential group in consumer mindset. Ruef (2003) argued that source similarity can become highly persuasive in decision making when two parties share similar desires and understand motives behind the desires. Following hypothesis has developed by the researcher according to the gathered literature from published journal articles. Hypothesis 4 H0: There is no relationship between source similarity and consumer choice of a travel destination H1: There is a positive relationship between source similarity and consumer choice of a travel destination 2.3 Consumer choice of travel destination Different travellers seek different information in making a decision to travel to a destination; these factors are always subjective and unique. According to Cohen and Avalli (2004) type of food and beverage is one of the most critical factors travellers search in terms of deciding of a travel destination. As food is one of the basic needs of humans‟ lives, it plays a considerable role in travelling too. Food is not only a factor in deciding a travel location but also a fact that creates an attraction towards a
  • 26. Student ID: 1524496 25 destination (Tikkanen, 2007). As food expenses of a tour covers more than 30% from the overall tour cost, travellers give priority towards that in terms of deciding their destination and tour (Graziani, 2003). Weather and climate conditions are another critical factor for travellers when they are in the process of decision making. Travellers most likely to research best time to travel, current climate conditions and weather indicators before they make a decision to travel to a particular destination (Sandes and Urdan, 2013). Almana and Mirza (2013) identified local culture and languages as the most important factors in travellers minds when they start planning to travel new destination. Consumer choice of a travel destination depends upon the level knowledge the traveller has and the level of quality information gathered on it (Seweryn, 2013). 2.4 Relationship between Electronic Word of Mouth and Consumer choice in a travel destination eWOM has shaped up and enhanced the travel and tourism industry with the emergence of internet and social media. It is recorded that over USD 10 billion travel purchases were influenced by eWOM in the year 2006 (Compete, 2007). Further, Compete mentioned, one out of every three travellers consider and give priority to information available on internet before making travel or hospitality related decisions. Gretzel and Yoo (2008) stated in excess of 70% travellers read and consider online reviews of previous travellers in planning their trip and that traveller ratings are considered as their main source of information. Travel Industry Wire (2007) stated more than 84% changed their travel plans according to travel reviews of experienced travellers. Yang (2008) argued that the written style of the review, expertise of the traveller and appropriateness of ratings define the strength of online review. Bae and Lee (2011) explained that the perceived risk of purchase decisions in travel and tourism are minimised due to traveller reviews. Trip Advisor as the leading website for reviews of destinations, travel packages, food, hotels and other activities, continuously update their website to cater their 350 million of monthly users. Over 385 million travellers post their reviews and travel
  • 27. Student ID: 1524496 26 related questions on Trip Advisor and it owns more than 6.6 million travel business entities comprising 135,000 destinations. Travellers shared 70 million photos per month and 255 new members are adding posts every minute. More than 340 million people have downloaded Trip Advisor mobile application and 50% users seek information on Trip Advisor before they make their travel decisions. Bone (1992) argued that some people shared information on their experience even during the consumption which has become very popular nowadays. As travellers used to check-in in Foursquare when they travel, Instagram pictures of food while dining and tweet while waiting for their transport. 2.5 Theoretical framework Based on the literature review conducted by the researcher, searchers‟ intent, trustworthiness of message, senders‟ expertise and source similarity are identified as independent variables to measure the impact of eWOM. Theoretical framework can be drafted as follows; Figure 1: Theoretical framework Searchers‟ Intent Trustworthiness of message Senders‟ expertise Source similarity Consumer choice of a destination Effects of Electronic Word of Mouth (eWOM) Independent Dependent variable
  • 28. Student ID: 1524496 27 Chapter 3: Research Methodology The main objective of the Research Methodology chapter is to explain the methodology researcher used in terms of conducting the research study. Based on the developed literature review, independent variable, dependent variable and dimensions to measure the impact of electronic word of mouth towards consumer choice of travel destination are identified by the researcher. This chapter covers research design, conceptual framework, operationalization of constructs, methods of data collection, and data analysis, sampling, questionnaire design and validity and reliability measures of the questionnaire. 3.1 Research problem Research problem states as the impact of the electronic word of mouth towards the consumer choice in a destination with regard to tourism industry. 3.2 Research approach Researcher developed the foundation of the research study based on the literature and built-up the theoretical framework. Hypotheses were developed to evaluate the impact of electronic word of mouth towards the consumer choice in destination. A survey is conducted by the researcher to gather primary data from the selected sample. Researcher will conduct a statistical analysis based on the gathered data to test the hypotheses. Research conclusion will base upon the critical discussion and researcher will provide recommendations to fill the identified gap. 3.3 Research design Research design is explained based on following sections; i. Type of the study Main purpose of the research study is to measure the impact of electronic word of mouth on consumer choice in travel destination. This can be identified as a causal research study which emphasises on measuring the relationship between electronic word of mouth and selecting a travel destination.
  • 29. Student ID: 1524496 28 ii. Study settings Research survey conducted without any control of the sample based on the natural conditions of the external environment. Therefore the study setting can be identified as non-contrived as the influence of researcher is at minimum level. iii. Time horizon Researcher collected data at a single point of time from a single sample, which is known as a single cross sectional study. Researcher collected primary data from the sample during May, 2016. 3.4 Operationalization Following table describes the operationalization of key concepts used by the researcher when conducting the research study. Variable Dimension Definition Indicators used to measure the dimension Electronic Word of Mouth (eWOM) Searchers‟ intent To what extent searcher has intention to gather information Frequency of reading online reviews Preference in gathering information Search for reviews before making a decision Number of websites access before making a decision
  • 30. Student ID: 1524496 29 Trustworthiness of message To what extent searcher trust information available on internet Biasness of customer review Trust of customer generated content Reviews from a familiar person Reviews with real names than fake names Reviews with traveller pictures Senders‟ expertise Expert knowledge and experience of the information sender Frequent reviews from a specific traveller Agreement from other people to a specific review Spellings and grammar mistakes of review Reviews from regular travellers than first time travellers Source similarity Similarity of sender and searcher in terms of believing information Preference for reviews from same gender Preference for reviews from same age level Preference for review from same residence area
  • 31. Student ID: 1524496 30 Choice of a travel destination Customer choice To what extent reviews influence the traveller in terms of selecting a travel destination Getting know of new destinations from reviews Getting know of tips in travelling from destinations Preference to travel to a destination with higher ratings Negative attitude towards destinations with negative reviews Confidence about a destination based on reviews Worry on travel decision without reviews Not selecting a destination without reviews Table 1: Operationalization of key concepts 3.5 Method of data collection Researcher gathered both primary and secondary data for the study. Secondary data was gathered to develop the constructs, dimensions, indicators and theoretical framework. Journal articles, research articles, books and online accessible articles were the source for secondary data. Primary data was collected from the survey conducted by the researcher. 3.6 Method of data presentation Tables, diagrams and charts are used to summarise and present information gathered by the survey. These are derived from Statistical Package for Social Sciences (SPSS) 20 version. 3.7 Method of data analysis Data analysis is done using the Statistical Package for Social Sciences (SPSS) 20
  • 32. Student ID: 1524496 31 version. Statistical concepts and models such as frequencies, descriptive, scatter plot analysis and Pearson correlation analysis are used as methods of data analysis. 3.8 Sampling Population of the study can be identified as the people who search information on internet. 120 of people from different countries, different age levels and different education levels are taken into consideration as the sample. Researcher used convenience sampling technique in selecting the sample which is identified as a non- probability sampling technique. 3.9 Questionnaire design Self-completion and structured questionnaire is distributed via online among the sample to gather primary data. Questionnaire consists with three sections as follows; i. Demographic information Demographic information section gathers information about the age, gender, education and occupation and internet usage of the sample in order to examine the personal characteristics. ii. Electronic Word of Mouth Section two gathers level of agreement on the impact of Electronic Word of Mouth (eWOM) in their decisions. It is examining the searchers‟ intent, trustworthiness of message, sender‟s expertise and source similarity using 5 point likert scale. iii. Choice of travel destination Section three gathers information about the choice of travel destination using seven questions. These questions are structured as 5 point likert scale questions on the level of agreement for customer choice statements. Then two open ended questions are asked to gather information on the ways that respondents get information and factors considered in decision making.
  • 33. Student ID: 1524496 32 3.10 Reliability and Validity measures According to Malhothra (2010) reliability refers to the degree to what extent set of constructs developed by the researcher are consistent with its measurements. Reliability is measured using two methodologies; they are stability and internal consistency. 3.10.1 Stability Stability is the degree of changes in responses if the questionnaire is completed by the same sample two times. It can be measured using test-retest technique but the researcher didn‟t get answers from the same sample twice therefore the stability is not computed. 3.10.2 Internal Consistency Internal consistency describes the degree of correspondence questions in terms of measuring a specific dimension. Cronbach‟s Alpha is used to calculate the internal consistency and each value should be greater than 0.6 to consider as internally consistent. Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .705 .708 4 Table 2: Cronbach‟s Alpha for Searchers‟ intent Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .726 .723 5 Table 3: Cronbach‟s Alpha for Trustworthiness of message
  • 34. Student ID: 1524496 33 Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .611 .637 4 Table 4: Cronbach‟s Alpha for Senders‟ expertise Reliability Statistics Cronbach's Alpha Cronbach's Alpha Based on Standardized Items N of Items .825 .826 3 Table 5: Cronbach‟s Alpha for Source Similarity Table no 2 – 5 show Cronbach‟s Alpha values of dimensions of eWOM. Dimension Cronbach‟s Alpha Condition Reliability Searchers‟ intent 0.705 ≥ 0.6 Satisfied Trustworthiness of message 0.762 ≥ 0.6 Satisfied Senders‟ expertise 0.611 ≥ 0.6 Satisfied Source similarity 0.825 ≥ 0.6 Satisfied Table 6: Summary of Cronbach‟s Alpha: Reliability Table above presents the summary of Cronbach‟s Alpha measures of each dimension which is calculated using SPSS 20 and values of them are greater than 0.6 which fulfilled the condition for reliability. It could be concluded that the questionnaire and dimensions are reliable to measure the developed construct. 3.10.3 Validity According to Malhothra (2010) validity explains as to what extent the measurements; processes and tools are free from errors. Validity measures are based on two major approaches, content validity and construct validity.
  • 35. Student ID: 1524496 34 3.10.4 Content validity Sekaran (2003) explains content validity as the strength of dimensions of a concept in terms of measuring it. Content validity is measured based on the literature review, simply it explains how well the researcher has identified and investigated on the concepts using journal papers and published researches. As the researcher has conducted a comprehensive and critical literature survey content validity can be considered as high. 3.10.5 Construct validity Sekaran (2003) explains the construct validity as to what extent the measurement tools and processes apprehend the concepts of research. Factor analysis is used to measure the construct validity. Techniques and conditions in measuring validity can be summarised as follows; i. Keiser – Meyer Olkin (KMO) – KMO > 0.5 ii. Average Variances Extracted (AVE) – AVE > 0.7 iii. Composite Reliability (CR) – CR > 0.5 iv. Bartlett‟s Sphercity – Sig. value < 0.05 Searchers‟ intent KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .619 Bartlett's Test of Sphericity Approx. Chi-Square 131.67 4 Df 6 Sig. .000 Table 7: KMO and Bartlett‟s test – Searchers‟ intent
  • 36. Student ID: 1524496 35 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.195 54.866 54.866 2.195 54.866 54.866 2 .975 24.387 79.253 3 .559 13.982 93.235 4 .271 6.765 100.000 Table 8: Total variance explained – Searchers‟ intent Component Matrixa Component 1 I often read customer testimonials when I see them available on the internet .541 I prefer to gather information about destinations from customer testimonials on websites .877 I often search for reviews about a particular destination before I make a decision to travel .859 I visit more than five websites to read about a destination before making a choice .630 Extraction Method: Principal Component Analysis. a. 1 components extracted. Table 9: Component Matrix – Searchers‟ intent Trustworthiness of message KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .710 Bartlett's Test of Sphericity Approx. Chi-Square 137.23 3 Df 10 Sig. .000 Table 10: KMO and Bartlett‟s test – Trustworthiness of message
  • 37. Student ID: 1524496 36 Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.710 54.196 54.196 2.710 54.196 54.196 2 .923 18.464 72.660 3 .771 15.415 88.075 4 .596 11.925 100.000 5 1.645E- 016 3.290E-015 100.000 Extraction Method: Principal Component Analysis. Table 11: Total variance explained – Trustworthiness of message Component Matrixa Component 1 I believe customer testimonials on websites about their travel experiences are not biased .577 I trust customer generated information on a destination than the website content .920 I prefer reviews on websites written by my friends or people I know .531 I prefer reviews shared with real names of the traveller than reviews with fake names .632 I trust reviews shared with pictures of the traveller than general reviews .920 Extraction Method: Principal Component Analysis. a. 1 components extracted. Table 12: Component Matrix – Trustworthiness of message
  • 38. Student ID: 1524496 37 Senders‟ expertise KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .548 Bartlett's Test of Sphericity Approx. Chi-Square 118.49 9 Df 6 Sig. .000 Table 13: KMO and Bartlett‟s test: Senders‟ expertise Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.008 50.195 50.195 2.008 50.195 50.195 2 .891 22.268 72.463 3 .868 21.695 94.158 4 .234 5.842 100.000 Extraction Method: Principal Component Analysis. Table 14: Total variance explained: Senders‟ expertise Component Matrixa Component 1 I trust reviews if the specific reviewer has submitted reviews frequently on their travel experiences .850 I tend to believe reviews if few people have liked or agreed on it in comments .481 Spelling and grammar mistakes in customer testimonials negatively affect on my decisions .482 I prefer to read reviews from people who travel often than first time travellers .906 Extraction Method: Principal Component Analysis. a. 1 components extracted. Table 15: Component matrix: Senders‟ expertise
  • 39. Student ID: 1524496 38 Source similarity KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .719 Bartlett's Test of Sphericity Approx. Chi-Square 129.45 3 Df 3 Sig. .000 Table 16: KMO and Bartlett‟s test: Source similarity Total Variance Explained Component Initial Eigenvalues Extraction Sums of Squared Loadings Total % of Variance Cumulative % Total % of Variance Cumulative % 1 2.226 74.193 74.193 2.226 74.193 74.193 2 .419 13.968 88.161 3 .355 11.839 100.000 Extraction Method: Principal Component Analysis. Table 17: Total variance explained: Source similarity Component Matrixa Component 1 I prefer to read and believe reviews about a destination from a reviewer from the same gender .864 I prefer to read and believe reviews about a destination from a reviewer from the same age level .847 I prefer to read and believe reviews about a destination from a reviewer from the same residence area .873 Extraction Method: Principal Component Analysis. a. 1 components extracted. Table 18: Component matrix: Source similarity
  • 40. Student ID: 1524496 39 Researcher has used KMO and Bartlett‟s significance value in measuring the validity of the dimensions. Summary of measures and the conditions are presented in following table. nsion KMO Bartlett‟s Sphercity Sig. value Total variance explained Conclusion Searchers‟ intent 0.619 6 0.000 54.886 Satisfied Trustworthiness 0.710 10 0.000 54.196 Satisfied Senders‟ expertise 0.548 6 0.000 50.195 Satisfied Source similarity 0.719 3 0.000 74.193 Satisfied Condition KMO > 0.5 Sig. value <0.05 Should load for one factor Table 19: Summary of validity values All factors have loaded into one factor and total variance explained values are greater than 50%. According to the summary, four dimensions used to measure searchers‟ intent have contributed 54.89% in measuring it, five dimensions used to measure trustworthiness have contributed 54.2% in measuring it, four dimensions used to measure senders‟ expertise have contributed 50.2% in measuring it and three dimensions used to measure source similarity 74.2% in measuring it. As these dimensions have met the condition of validity, conclusion can be drawn as dimensions are valid to measure the constructs.
  • 41. Student ID: 1524496 40 Diagram 1: Gender composition Chapter 4: Data Analysis and Presentation The main objective of this chapter is to present data based on the data analysis of the research study. Initially the sample profile will be analysed to develop a general idea on the sample of the research study. Statistical analysis will be conducted by the researcher to analyse the impact of eWOM towards selecting a travel destination. SPSS 20 version used to conduct the statistical analysis. 4.1 Sample profile Well-structured and self-administrated questionnaire was distributed among 120 respondents online. All questions are answered accurately and there are no missing values in the data set. Therefore responses from 120 participants are taken into the research study. 4.1.1 Gender The diagram no 1 shows the gender composition of the sample of the research study. 52.5% are female participants in the selected sample. Table no 20 shows the gender frequencies. Gender Frequency Percent Valid Percent Cumulative Percent Male 57 47.5 47.5 47.5 Female 63 52.5 52.5 100.0 Total 120 100.0 100.0 Table 20: Gender composition
  • 42. Student ID: 1524496 41 Diagram 2: Age composition Diagram 3: Education level 4.1.2 Age The diagram no 2 shows the age composition of the sample in the research study. 46.67% of participants are from the age group 21 – 30 and 42.5% of participants are from the age 31 - 40. All together 89.2% of participants are from 21 – 40 age groups and the table no 21 shows the age frequencies. Age Age Frequency Percent Valid Percent Cumulative Percent 21-30 56 46.7 46.7 46.7 31-40 51 42.5 42.5 89.2 41-50 8 6.7 6.7 95.8 Over 50 5 4.2 4.2 100.0 Total 120 100.0 100.0 Table 21: Age composition 4.1.3 Education level The diagram 3 and the table number 22 explain the education level composition of the sample of the research study. 50.83% of participants are from graduate level and it can be considered as the highest proportion from the sample. 32.5% of participants have gained postgraduate or higher qualifications.
  • 43. Student ID: 1524496 42 Diagram 4: Occupation level composition Education Level Frequency Percent Valid Percent Cumulative Percent High School / Advanced Level 15 12.5 12.5 12.5 Graduate level 61 50.8 50.8 63.3 Postgraduate level & over 39 32.5 32.5 95.8 Other 5 4.2 4.2 100.0 Total 120 100.0 100.0 Table 22: Education level composition 4.1.4 Occupation Occupation level composition is illustrated in the diagram no 4 and tables no 23 and 51.67% of participants are from the junior executive and executive level. Management and top management level participants cover 43.3% of the sample. Occupation Level Frequency Percent Valid Percent Cumulative Percent Junior executive / Executive level 62 51.7 51.7 51.7 Management / Top management level 52 43.3 43.3 95.0 Self employed 3 2.5 2.5 97.5 Unemployed 3 2.5 2.5 100.0 Total 120 100.0 100.0 Table 23: Occupation level composition
  • 44. Student ID: 1524496 43 Diagram 5: Internet use composition 4.1.5 Use of internet Use of internet was measured by the question „number of hours sent on internet per day‟ and the diagram 5 and table 24 describe the use of internet. 30.83% of participants spent more than 8 hours on internet per day. 28.3% of participants spent 5 – 8 hours on internet therefore over 50% of participants are heavy internet users. No. of hours spent on internet per day Frequency Percent Valid Percent Cumulative Percent More than 8 hours 37 30.8 30.8 30.8 5 - 8 hours 34 28.3 28.3 59.2 2 - 5 hours 28 23.3 23.3 82.5 Less than 2 hours 18 15.0 15.0 97.5 Not regularly 3 2.5 2.5 100.0 Total 120 100.0 100.0 Table 24: Internet use composition 4.2 Dimensions of eWOM Searchers‟ intent, trustworthiness of message, senders‟ expertise and source similarity are taken into consideration as dimensions of eWOM. This section will analyse the agreement levels of each indicator in terms of measuring the impact of eWOM towards selecting a travel destination.
  • 45. Student ID: 1524496 44 Diagram 6: Interest to read testimonials on internet (SI1) 4.2.1 Searchers’ intent Searchers‟ intent dimension is measured using four indicators, they are; Reading testimonials often when user see them on the internet The diagram 6 and the table 25 describe the levels of agreement for the question „I often read customer testimonials when I see them available on the internet‟. 21.67% of participants from the sample strongly agreed and 50.83% of participants from the sample agreed. No one strongly disagreed with the statement. People often read customer testimonials when they are available on the internet. I often read customer testimonials when I see them available on the internet Frequency Percent Valid Percent Cumulative Percent Disagree 9 7.5 7.5 7.5 Neither disagree or nor agree 24 20.0 20.0 27.5 Agree 61 50.8 50.8 78.3 Strongly agree 26 21.7 21.7 100.0 Total 120 100.0 100.0 Table 25: Interest to read testimonials on internet (SI1)
  • 46. Student ID: 1524496 45 Diagram 7: Gather information from customer testimonials (SI2) Gather information about destinations through customer testimonials The diagram 7 and the table 26 describe the levels of agreement for the question „I prefer to gather information about destinations from customer testimonials on websites‟. 18.33% of participants from the sample strongly agreed and 52.5% of participants from the sample agreed. 1.67% of participants strongly disagreed and 6.67% disagreed with the statement. Majority of people prefer to gather information about destinations via customer testimonials on websites. I prefer to gather information about destinations from customer testimonials on websites Frequency Percent Valid Percent Cumulative Percent Strongly disagree 2 1.7 1.7 1.7 Disagree 8 6.7 6.7 8.3 Neither disagree nor agree 25 20.8 20.8 29.2 Agree 63 52.5 52.5 81.7 Strongly agree 22 18.3 18.3 100.0 Total 120 100.0 100.0 Table 26: Gather information from customer testimonials (SI2)
  • 47. Student ID: 1524496 46 Diagram 8: Reviews before making the decision (SI3) Often search reviews on a destination before travelling to the particular destination Levels of agreements for the question „I often search for reviews about a particular destination before I make a decision to travel‟ are explained in the diagram 8 and frequencies are available on the table 27. 40.83% of participants strongly agreed and 35.83% of participants agreed on the statement. 2 participants from the sample mentioned as they strongly disagreed. Majority of people read reviews on a particular destination before making their decision to travel to that destination which shows that the impact from reviews is substantial. I often search for reviews about a particular destination before I make a decision to travel Frequency Percent Valid Percent Cumulative Percent Strongly disagree 2 1.7 1.7 1.7 Disagree 12 10.0 10.0 11.7 Neither disagree nor agree 14 11.7 11.7 23.3 Agree 43 35.8 35.8 59.2 Strongly agree 49 40.8 40.8 100.0 Total 120 100.0 100.0 Table 27: Search for reviews before travelling (SI3)
  • 48. Student ID: 1524496 47 Diagram 9: Visit more than 5 websites (SI4) Visit more than five websites to read reviews about a destination The diagram 9 and the table no 28 shows the level of agreement on visiting more than five websites to read about a destination before making a choice. 18.3% and 37.5% of participants from the sample strongly agreed and agreed to the statement respectively. 24.17% are neither agree nor disagree. According to the sample majority of people are not visiting more than five websites to read about a destination, average number of people visit to gather information. I visit more than five websites to read about a destination before making a choice Frequency Percent Valid Percent Cumulative Percent Strongly disagree 5 4.2 4.2 4.2 Disagree 19 15.8 15.8 20.0 Neither disagree nor agree 29 24.2 24.2 44.2 Agree 45 37.5 37.5 81.7 Strongly agree 22 18.3 18.3 100.0 Total 120 100.0 100.0 Table 28: Visit more than five websites to read about a destination (SI4)
  • 49. Student ID: 1524496 48 Diagram 10: Biasness of the customer testimonials (TW1) Overall level of agreement: Searchers‟ intent Summary of the measures of the level of agreements for searcher‟s intent dimension can be presented in the table no 29. Overall mean value for searchers‟ intent can calculated as 3.8 and variance matrix is 0.497 which shows less variation from the central tendency. Both median and mode values are 4, majority of participants from the sample have shown an intention to search about destinations using customer reviews. Statistics SI1 SI2 SI3 SI4 Searchers‟ Intent Mean 3.87 3.79 4.04 3.50 3.8000 Median 4.00 4.00 4.00 4.00 4.0000 Mode 4 4 5 4 4.00 Std. Deviation .840 .878 1.040 1.092 .70532 Variance .705 .771 1.082 1.193 .497 Table 29: Overall central tendency of searchers‟ intent 4.2.2 Trustworthiness of message Trustworthiness of message dimension is measured by using five indicators, they are; Believe customer generated testimonials as not biased to organisations Levels of agreements to the statement „I believe customer testimonials on websites about their travel experiences are not biased‟ are presented on the diagram 10 and the table no 30. 5.8% and 36.7% of participants strongly agreed and agreed respectively. 57.5% of participants have either disagreed or neutral on the biasness.
  • 50. Student ID: 1524496 49 Diagram 11: Trust customer content than website (TW2) Majority of people do not believe the testimonials on websites are unbiased from travel organisations. I believe customer testimonials on websites about their travel experiences are not biased Frequency Percent Valid Percent Cumulative Percent Strongly disagree 4 3.3 3.3 3.3 Disagree 13 10.8 10.8 14.2 Neither disagree nor agree 52 43.3 43.3 57.5 Agree 44 36.7 36.7 94.2 Strongly agree 7 5.8 5.8 100.0 Total 120 100.0 100.0 Table 30: Biasness of the customer testimonials (TW1) Trust customer generated content than website content The diagram 11 and the table no 31 show the levels of agreements on the question asked about the trust between customer generated content and website content. Around 60.8% trust user generated content than the website content. Majority of peopl trust or prefer user generated content on a destination than the website content. I trust customer generated information on a destination than the website content Frequency Percent Valid Percent Cumulative Percent Disagree 17 14.2 14.2 14.2 Neither disagree nor agree 30 25.0 25.0 39.2 Agree 57 47.5 47.5 86.7 Strongly agree 16 13.3 13.3 100.0 Total 120 100.0 100.0 Table 31: Trust customer content than website content (TW2)
  • 51. Student ID: 1524496 50 Diagram 12: Trust reviews from friends (TW3) Prefer to believe testimonials from friends or people user knows The diagram 12 and the table no 32 show the level of agreements of believing testimonials from travellers user know than general public. Around 72.5% participants have agreed with this statement. Majority of people tend to trust testimonials from people they know than general reviews. I prefer reviews on websites written by my friends or people I know Frequency Percent Valid Percent Cumulative Percent Strongly disagree 5 4.2 4.2 4.2 Disagree 10 8.3 8.3 12.5 Neither disagree or nor agree 18 15.0 15.0 27.5 Agree 44 36.7 36.7 64.2 Strongly agree 43 35.8 35.8 100.0 Total 120 100.0 100.0 Table 32: Trust reviews from friends (TW3)
  • 52. Student ID: 1524496 51 Diagram 13: Trust reviews with actual names (TW4) Diagram 14: Trust reviews with photos (TW5) Trust reviews of travellers with real names than fake names The diagram 13 and the table 33 show the agreement levels for trusting traveller reviews with actual names than fake names which 77.5% of participants agreed. Majority of people trust reviews with actual names than the fake and funny names as it shows the professionalism of the traveller. I prefer reviews shared with real names of the traveller than reviews with fake names Frequency Percent Valid Percent Cumulative Percent Strongly disagree 3 2.5 2.5 2.5 Disagree 6 5.0 5.0 7.5 Neither disagree or nor agree 18 15.0 15.0 22.5 Agree 37 30.8 30.8 53.3 Strongly agree 56 46.7 46.7 100.0 Total 120 100.0 100.0 Table 33: Trust reviews with actual names (TW4) Trust reviews of travellers with photos than general reviews The diagram 14 and the table 34 show the trust of traveller reviews with photos of travellers than general reviews. 73.3% of participants have agreed on this statement as majority of people tend to believe what travellers say when they prove it with photos. Visuals of the testimonials are important in gaining trust.
  • 53. Student ID: 1524496 52 I trust reviews shared with pictures of the traveller than general reviews Frequency Percent Valid Percent Cumulative Percent Strongly disagree 5 4.2 4.2 4.2 Disagree 8 6.7 6.7 10.8 Neither disagree or nor agree 19 15.8 15.8 26.7 Agree 52 43.3 43.3 70.0 Strongly agree 36 30.0 30.0 100.0 Total 120 100.0 100.0 Table 34: Trust reviews with photos (TW5) Overall level of agreement: Trustworthiness of message Summary of the measures of the level of agreements for trustworthiness of message dimension can be presented in the table no 35. Overall mean value for trustworthiness of message can calculated as 3.77 and variance matrix is 0.47 which shows less variation from the mean value. Median value is 3.8 as there is a difference from the biasness indicator which recorded the median value as 3. High agreement level occurred with the reviews with real names than fake names. Statistics TW1 TW2 TW3 TW4 TW5 Trustworthiness Mean 3.31 3.60 3.92 4.14 3.88 3.7700 Median 3.00 4.00 4.00 4.00 4.00 3.8000 Mode 3 4 4 5 4 4.20 Std. Deviation .868 .893 1.104 1.015 1.047 .68337 Variance .753 .797 1.220 1.030 1.096 .467 Table 35: Overall central tendency of trustworthiness of message 4.2.3 Senders’ expertise Senders‟ expertise dimension is measured by four indictors which are;
  • 54. Student ID: 1524496 53 Diagram 15: Trust reviews from frequent submitters (SE1) Diagram 16: Trust reviews with likes (SE2) Trust reviews from a traveller who submitted reviews frequently The diagram 15 and the table 36 show the trust towards a review from a traveller who posts reviews frequently. No one disagreed with this statement and 80% of participants agreed to the point. Majority of people tend to trust reviews from frequent reviews submitters than unknown submitters as it expresses the expertise of traveller. I trust reviews if the specific reviewer has submitted reviews frequently on their travel experiences Frequency Percent Valid Percent Cumulative Percent Disagree 5 4.2 4.2 4.2 Neither disagree or nor agree 19 15.8 15.8 20.0 Agree 66 55.0 55.0 75.0 Strongly agree 30 25.0 25.0 100.0 Total 120 100.0 100.0 Table 36: Trust reviews from frequent submitters (SE1) Trust reviews with likes and comments from other people The diagram 16 and the table 36 show the trust on reviews with likes and comments of others. 56.7% of participants agreed with the statement and 36.7% of participants have neutral feeling on this. Other people‟s agreements have average impact on trust.
  • 55. Student ID: 1524496 54 Diagram 17: Negative impact of Spellings and grammar I tend to believe reviews if few people have liked or agreed on it in comments Frequency Percent Valid Percent Cumulative Percent Strongly disagree 1 .8 .8 .8 Disagree 7 5.8 5.8 6.7 Neither disagree or nor agree 44 36.7 36.7 43.3 Agree 54 45.0 45.0 88.3 Strongly agree 14 11.7 11.7 100.0 Total 120 100.0 100.0 Table 37: Trust reviews with likes (SE2) Spellings and grammar mistakes negatively affect on my trust The diagram 17 and the table 38 show the agreement for the negative impact on trust due to the spellings and grammar errors of reviews. 63.3% of participants agreed but 21.7% of participants have neutral feeling towards these errors. Spellings and grammar mistakes have an average impact of negativity. Spellings and grammar mistakes in customer testimonials negatively affect on my decisions Frequency Percent Valid Percent Cumulative Percent Strongly disagree 3 2.5 2.5 2.5 Disagree 15 12.5 12.5 15.0 Neither disagree or nor agree 26 21.7 21.7 36.7 Agree 39 32.5 32.5 69.2 Strongly agree 37 30.8 30.8 100.0 Total 120 100.0 100.0 Table 38: Negative impact of Spellings and grammar (SE3)
  • 56. Student ID: 1524496 55 Diagram 18: Trust experienced travellers (SE4) Trust reviews from regular travellers than first time travellers The diagram 18 and the table no 39 explain the trust on reviews from regular and experienced travellers than first time travellers. No one disagreed with this statement and 79.2% participants have agreed. People tent read and trust reviews from experienced travellers than the first time travellers as they have expertise in travelling than general public. I prefer to read reviews from people who travel often than first time travellers Frequency Percent Valid Percent Cumulative Percent Disagree 5 4.2 4.2 4.2 Neither disagree or nor agree 20 16.7 16.7 20.8 Agree 48 40.0 40.0 60.8 Strongly agree 47 39.2 39.2 100.0 Total 120 100.0 100.0 Table 39: Trust experienced travellers (SE4) Overall level of agreement: Senders‟ expertise Summary of the measures of the level of agreements for senders‟ expertise dimension are presented in the table no 40. Overall mean value for senders‟ expertise can calculated as 3.88 and variance matrix is 0.362 which shows less variation from the mean value. Median value and mode values are 4 and 4.25 respectively.
  • 57. Student ID: 1524496 56 Diagram 19: Reviews from same gender (SS1) Statistics SE1 SE2 SE3 SE4 Senders‟ Expertise Mean 4.01 3.61 3.77 4.14 3.8813 Median 4.00 4.00 4.00 4.00 4.0000 Mode 4 4 4 4 4.25 Std. Deviation .761 .802 1.098 .843 .60196 Variance .580 .644 1.206 .711 .362 Table 40: Overall central tendency of senders‟ expertise 4.2.4 Source similarity Source similarity dimension is measured by using three indicators which are; Prefer to read and trust reviews from same gender The diagram 19 and the table no 41 explain the preference for reviews from the same gender. 84.2% of participants have disagreed or have neutral feeling on giving priority for reviews from same gender. Only 19 participants agreed with this statement so gender similarity has lower level of impact towards review preference. I prefer to read and believe reviews about a destination from a reviewer from the same gender Frequency Percent Valid Percent Cumulative Percent Strongly disagree 29 24.2 24.2 24.2 Disagree 41 34.2 34.2 58.3 Neither disagree or nor agree 31 25.8 25.8 84.2 Agree 15 12.5 12.5 96.7 Strongly agree 4 3.3 3.3 100.0 Total 120 100.0 100.0 Table 41: Reviews from same gender (SS1)
  • 58. Student ID: 1524496 57 Diagram 20: Reviews from same age group (SS2) Prefer to read and trust reviews from same age level The diagram 20 and the table 42 explain the preference for reviews from the same age levels. 60% of participants have disagreed or have neutral feeling on giving priority for reviews from same age group. But 48 participants agreed with this statement therefore age level similarity has average level of impact towards review preference I prefer to read and believe reviews about a destination from a reviewer from the same age level Frequency Percent Valid Percent Cumulative Percent Strongly disagree 13 10.8 10.8 10.8 Disagree 34 28.3 28.3 39.2 Neither disagree or nor agree 25 20.8 20.8 60.0 Agree 40 33.3 33.3 93.3 Strongly agree 8 6.7 6.7 100.0 Total 120 100.0 100.0 Table 42: Reviews from same age group (SS2)
  • 59. Student ID: 1524496 58 Diagram 21: Reviews from same residence area (SS3) Prefer to read and trust reviews from same residence area The diagram 21 and the table 43 describe the preference for reviews from same residence area. 73.3% of participants disagreed or have neutral feeling on the residence are which can recognized as less important factor in measuring impact of eWOM. I prefer to read and believe reviews about a destination from a reviewer from the same residence area Frequency Percent Valid Percent Cumulative Percent Strongly disagree 19 15.8 15.8 15.8 Disagree 39 32.5 32.5 48.3 Neither disagree or nor agree 30 25.0 25.0 73.3 Agree 29 24.2 24.2 97.5 Strongly agree 3 2.5 2.5 100.0 Total 120 100.0 100.0 Table 43: Reviews from same residence area (SS3) Overall level of agreement: Senders‟ expertise Summary of the measures of the level of agreements for senders‟ expertise dimension are presented in the table no 44. Overall mean value for senders‟ expertise can calculated as 2.66 and variance matrix is 0.911 which shows less variation from the mean value. Median value and mode values are 2.67 and 2 respectively. As the mean value is 2.66 which is average level of agreement for the dimension, explains lower level of impact for eWOM.
  • 60. Student ID: 1524496 59 Statistics SS1 SS2 SS3 Source Similarity Mean 2.37 2.97 2.65 2.6611 Median 2.00 3.00 3.00 2.6667 Mode 2 4 2 2.00 Std. Deviation 1.084 1.152 1.090 .95460 Variance 1.175 1.327 1.187 .911 Table no. 44: Overall central tendency of source similarity 4.3 Consumer choice of travel destination Table no 45 shows the central tendency values for consumer choice of travel destination from the sample. Mean value of the consumer choice is 3.42 with a 0.656 of variance. Mode values and median values of consumer choice are 3.57 and 3.5 respectively. Last indicator which measures the lower probability of visiting a destination without checking any reviews recorded „Strongly disagreed‟ as the mostly preferred answer which affected on the overall mean value. Statistics CC (1) CC (2) CC (3) CC (4) CC (5) CC (6) CC (7) Consumer Choice Mean 3.27 3.69 3.78 3.62 3.73 3.25 2.58 3.4155 Median 4.00 4.00 4.00 4.00 4.00 3.00 2.00 3.5000 Mode 4 4 4 4 4 4 1 3.57 Std. Deviation 1.083 .896 1.049 1.109 1.002 1.147 1.333 .80982 Variance 1.172 .803 1.100 1.230 1.004 1.315 1.776 .656 Table 45: Central tendency of consumer choice in travel destination 4.5 Impact of eWOM towards the consumer choice of a travel destination To analyse the impact of eWOM towards the consumer choice of a travel destination researcher has used scatter plot and correlation analysis.
  • 61. Student ID: 1524496 60 Diagram 22: Scatter plot – SI and CC Searcher‟ intent on consumer choice Scatter plot in the diagram 22 explains the searchers‟ intent has positive relationship with consumer choice of a travel destination. The table no 46 shows the correlation value between searchers‟ intent and consumer choice which is 0.623. Correlation matrix shows the relationship between searchers‟ intent and consumer choice is strong positive. Correlations Search Intent Consumer Choice Search Intent Pearson Correlation 1 .623** Sig. (2-tailed) .000 N 120 120 Consumer Choice Pearson Correlation .623** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed). Table no 46: Correlation analysis – SI and CC Hypothesis testing H0: There is no relationship between the searchers‟ intent and consumer choice of a travel destination H1: There is a positive relationship between the searchers‟ intent and consumer choice of a travel destination Sig. value = 0.000 | 0.000 < 0.05 Null hypothesis is rejected and it is concluded that there is a positive relationship between searchers‟ intent and consumer choice.
  • 62. Student ID: 1524496 61 Diagram no 23: Scatter plot - TW and CC Trustworthiness of message on consumer choice The diagram 23 represents the scatter plot of trustworthiness of message and consumer choice. It can be described as a positive relationship between trust and consumer choice. The table 47 shows the calculated correlation value for these two variables. Correlation value is 0.544 it can be interpreted as a strong positive relationship. Correlations Consumer Choice Trustworthiness Consumer Choice Pearson Correlation 1 .544** Sig. (2-tailed) .000 N 120 120 Trustworthiness Pearson Correlation .544** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed). Table 47: Correlation analysis – TW and CC Hypothesis testing H0: There is no relationship between trustworthiness of messages and consumer choice of a travel destination H1: There is a positive relationship between trustworthiness of messages and consumer choice of a travel destination Sig. value = 0.000 | 0.000 < 0.05 Null hypothesis is rejected, it is concluded that there is a positive relationship between trustworthiness of messages and consumer choice of a travel destination.
  • 63. Student ID: 1524496 62 Diagram 24: Scatter plot – SE and CC Senders‟ expertise on consumer choice The diagram 24 presents the scatter plot of senders‟ expertise with consumer choice. This can be seen as a dispersed to positive side but shows a variance in few data. Correlation analysis according to the table no 48 correlation value is computed as 0.439 which shows a weak positive relationship between senders‟ expertise and consumer choice. Correlations Consumer Choice Sender Expertise Consumer Choice Pearson Correlation 1 .439** Sig. (2-tailed) .000 N 120 120 Sender Expertise Pearson Correlation .439** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed). Table 48: Correlation analysis – SE and CC Hypothesis testing H0: There is no relationship between senders‟ expertise and consumer choice of a travel destination H1: There is a positive relationship between senders‟ expertise and consumer choice of a travel destination Sig. value = 0.000 | 0.000 < 0.05 Null hypothesis is rejected, it is concluded that there is a positive relationship between senders‟ expertise and consumer choice of a travel destination.
  • 64. Student ID: 1524496 63 Diagram 25: Scatter plot – SS and CC Source similarity on consumer choice Scatter plot in the diagram 25 shows the relationship between source similarity and consumer choice. Data is scattered in between all responses and the correlation matrix (in the table no 49) shows the value as 0.329 which weak relationship. Correlations Consumer Choice Source Similarity Consumer Choice Pearson Correlation 1 .329** Sig. (2-tailed) .000 N 120 120 Source Similarity Pearson Correlation .329** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed). Table 49: Correlation analysis – SS and CCs Hypothesis 4 H0: There is no relationship between source similarity and consumer choice of a travel destination H1: There is a positive relationship between source similarity and consumer choice of a travel destination Sig. value = 0.000 | 0.000 < 0.05 Null hypothesis is rejected, it is concluded that there is a positive relationship between source similarity and consumer choice of a travel destination.
  • 65. Student ID: 1524496 64 Diagram 26: Scatter plot – Overall eWOM and CC Overall eWOM impact on consumer choice The scatter plot in the diagram 26 represents the casual relationship between overall eWOM impacts towards the consumer choice of a travel destination. Scatter plot shows a positive relationship and the correlation value computed in the table 50 shows as 0.663. According to the correlation analysis overall eWOM impact has a strong positive relationship with consumer choice in a travel destination. Correlations Consumer Choice Overall eWOM Consumer Choice Pearson Correlation 1 .663** Sig. (2-tailed) .000 N 120 120 Overall eWOM Pearson Correlation .663** 1 Sig. (2-tailed) .000 N 120 120 **. Correlation is significant at the 0.01 level (2-tailed). Table 50: Correlation analysis – Overall eWOM and CC
  • 66. Student ID: 1524496 65 Chapter 5: Conclusion, Implication and Recommendations The ultimate objective of the research study is to identify the impact of the Electronic Word of Mouth (eWOM) in consumer choice of travel destination and provide recommendations to the marketers. Based on the research study data analysis, conclusions are drawn by the researcher and recommendations will be suggested. Finally further research ideas will be recommended with insights. 5.1 Conclusion and implication eWOM has now become one of the most credible and highly accessible mediums in consumer buying process. It has upgraded the tourism industry by enhancing the quality of information sources, timeliness of decisions and satisfaction of travel experience. These dimensions are searchers‟ intention, trustworthiness of the shared message, senders‟ expertise and source similarity. Researcher has conducted a literature survey and identified four main dimensions in examining the impact of eWOM towards the consumer choice. Researcher has conducted the Pearson correlation analysis to identify the casual relationship between dimensions of eWOM and consumer choice of a travel destination. According to the analysis both searchers‟ intention and trustworthiness of message have strong positive relationship with the consumer choice of a travel destination. Senders‟ expertise and source similarity have positive correlation with consumer choice but the strength of the relationship is weak. As mentioned, searchers‟ intentions and trustworthiness play a substantial role in building up the overall impact of eWOM. However overall eWOM has a strong positive relationship with the consumer choice. Researcher has identified the mediums of eWOM through the primary research study conducted by the researcher. These sources are travel websites such as Lonely Planet, Trip Advisor, Agoda.com and Booking.com. From these review websites Trip Advisor was the preferred website from everyone. Majority of participants have mentioned social media platforms and travel blogs as their main source for information about destinations. In terms of social media platforms
  • 67. Student ID: 1524496 66 Facebook and Instagram play a key role in sharing destinations related information. Few of participants mentioned Twitter and Flicker as well and YouTube is also mentioned as a source for destination information. With the emerging trend of eWOM in the travel industry, marketers‟ job has been challenged by travellers. These challenges can be identified as follows; i. Need to monitor online presence of their brands Consumers are posting their experiences everywhere such as their personal social media accounts, company‟s social media pages, review websites and written articles. Monitoring is a challenge for marketers as they have to engage in monitoring continuously and examine the impact of them. ii. Travellers know everything Today the travellers know about everything, they know about destinations, food, weather conditions, recent events, potential itineraries and attractions nearby, therefore attracting a traveller is difficult with the expertise level. Marketers need to come up with different strategies in approaching these expertise customers. iii. Consumer buying behaviour has become complicated now Consumers nowadays follow different approaches, their reactions and behaviour cannot be predicted. Their buying behaviour has been affected by eWOM and it has become complicated to envisage. Marketers have to examine consumers very closely in catering to them. iv. People trust user generated content than the marketer created content People trust and prefer to read user generated content than marketers‟ content which is published by travel organisations. Marketers should be very cautious and creative in creating and implementing the content strategy for their travel brand. v. Negative eWOM can damage the sales and as well as the overall image of the brands Negative eWOM can spread faster than positive eWOM and can damage sales and
  • 68. Student ID: 1524496 67 overall image of the brand. Customers now have the opportunity to complain against brands on public level by tagging the company pages, they can influence the overall ratings of the company. Therefore marketers need to the challenge of handling online enquires, negative feedback and complaints in very serious manner. 5.3 Recommendations Based on the research study conducted researcher, the following strategies are recommended for travel digital marketers; i. Give priority for online brand reputation Today searchers‟ intention in searching information on internet is very high and information is freely available and accessible via internet. Travel marketer should always monitor their brand presence and online reputation. Marketers‟ responsibility has expanded from the point of online posting to monitoring and reacting professionally on the internet. Marketers should use online tools such as Social Bakers, Hootsuite, Hubspot, Tweet Deck and Klout to monitor and manage their online reputation. ii. Enhance internal operational processes Mostly consumers are complaining and posting negatively on the internal operational processes. For an example, if a traveller sees an error in the website content on a destination they will share the error on social media. Therefore the internal processes should be more upgraded and well-structured to reduce the chances of negative eWOM. At the same time if a travel organisation updates an interesting content via their websites, consumers will share this content on social media without any benefit. iii. Proper way to handle online complaints Travel organisations should implement a proper way of managing online complaint process. Organisations should be more professional and cautious when replying to the raised complaints and should always learn from these negative comments.
  • 69. Student ID: 1524496 68 iv. Investing more on eWOM than traditional content It is identified that the user generated content is more trusted than the company generated content. Therefore travel organisations should identify the mediums of eWOM and utilize the marketing communication strategy with the use of these identified mediums. Travel blogging, Instagram, Snapchat, Sponsoring popular travel bloggers, create viral stories and video storytelling would be beneficial for travel companies than pay per click advertising. v. Should be proactive Consumers know everything! They get to know about natural disasters, economic downturns, political status, climate changes and other customers‟ previous experiences. If marketers fail to answer a question, spread false content or are not aware of a situation, it can bring a big harm to the brand especially in tourism industry. Therefore marketers should be proactive and always look for new opportunities to utilize their effort. Positive eWOM can create large number of sales, good online reputation and brand promoters from their own customers. 5.4 Further research insights Researcher has identified following areas as further research areas based on the research study conducted; i. According to the open ended question answers for the question on mediums of information gathering on destination, lot of responded mentioned the popular website „Trip Advisor‟. It will be an interesting research topic to analyse the influence of Trip Advisor reviews on travel decision making. ii. This research conducted to identify and examine the relationship and impact of eWOM towards consumer choice with regard to tourism industry. It will be a comprehensive and vital topic to conduct a research study on the impact of eWOM on demographical basis. This will be a descriptive research approach to examine the
  • 70. Student ID: 1524496 69 impact of eWOM differences based on demographic factors such as gender, age and social role. iii. Research can be conducted to create a model for eWOM influence in the buying decision process as this model could enhance digital marketing efforts in a tremendous manner. As eWOM influence each stage of the consumer buying process, model can suggest different strategies for each stage. iv. Research can be conducted to measure the impact of social networking and blogging (most trending eWOM sources) towards travel decision making. The marketers can utilize their social media and inbound marketing strategies based on the research insights. v. Examine the mobile application contribution towards travel purchase intention can become an interesting and trending topic to study as today smart phone has acquired the share than the desktop in some countries. These insights can be used to implement mobile applications and new mobile marketing strategies.